contents...a maruti suzuki car remains a lifetime enjoyable experience for you. irrespective of...

ContentsCorporate Overview 01-19

The Motivation is You 02

Key Figures 04

Quarterly Highlights 05

Sustainability Highlights 06

Product Portfolio 10

Message from the Chairman 12

Message from the Managing Director & CEO 14

Board of Directors 16

Executive Management Team 18

Statutory Reports 20-81

Board's Report 20

Corporate Governance Report 58

Management Discussion & Analysis 70

Business Responsibility Report 78

Financial Statements 126-259

Standalone Financials 126

Consolidated Financials 192

Sustainability Report 82-125

THE MOTIVATION IS YOUSince inception, everything we have done has had YOU at the heart of it.

We did not just set our eyes on manufacturing cars. We have built a business that promises long-term commitment to YOU.

Right through your journey—from buying to maintaining to selling an old model in exchange of a new one—we stand by your side.

We have nurtured a culture, and created the right infrastructure and systems to ensure that owning a Maruti Suzuki car remains a lifetime enjoyable experience for YOU.

Irrespective of where you are, the outreach of our sales and service network has you covered.

Our disciplined approach and eye for detail, stemming from the perfect amalgamation of the Indian and Japanese cultures, continues to hold us in good stead. Even the smallest of parts has been thought through—while component production has been localised, the quality has been maintained at international standards. The resulting affordability and easy availability of parts lowers the downtime of the vehicle, making it a key factor behind our popularity with you.

We work on the premise that Trust begets trust. Our used car business, True Value, accentuates the joy of exchanging old models for new, or of selling or buying a pre-owned car.

In achieving all of this, the road is not smooth for us at all times. But YOU keep us motivated. YOU keep us going.

We are now gearing up for the future to enhance your experience with us to greater heights.

India is evolving. And so are Indian customers. We are adapting to your changing aspirations by embracing new-age technologies, new product categories, style and design. Through the NEXA and ARENA channels, we are foraying into a whole new way of interacting with you.

By continuing to deliver on your expectations and with every smile we are able to bring to your face, we find a new impetus to get bigger and better.

We will strive to do our best.

The motivation is YOU.

We always think about you – how to delight you through our products and services. Your needs are at the centre of all our endeavours as a company. Even our journey in 1982 began by partnering with Suzuki Motor Corporation, Japan, whose expertise could best meet your needs and aspirations. We are continuing to think about you; bringing to you the best products in terms of quality and technology and delivering you a car ownership experience that is in line with evolving times and tastes.

Delighting YouWe create customer delight throughout the ownership period. The Company is building strong trust with the customers by offering a pleasant buying experience, low cost of maintenance, easy availability of spare parts, proximity of service centres and exchange of old cars with new models.

Thinking about You

Corporate Overview | The Motivation is You

2

Evolving with You

Gearing up for You

With rising income, changing lifestyle, and increased exposure to the external world, customer expectations from products and services are going up. To meet this growing need of customers, the Company is evolving its offerings. The introduction of exciting product line-up and sales channels like NEXA and ARENA are such initiatives.

Amid the changing market economics, government regulations and industry dynamics, we stay motivated by our quest to exceed your expectations and creating delightful memories for you. With renewed vigour, we are gearing up for the future by working on strengthening the quality of business, introducing appropriate technology, harnessing partnerships and building capabilities.

3

PAT Margin

6.5FY' 14

7.6FY' 15

9.5FY' 16

11.0FY' 17

9.9FY' 18

(%) ROE

14.1FY' 14

16.6FY' 15

19.4FY' 16

22.2FY' 17

19.8FY' 18

(%)

Key Figures

Dividend Payout Ratio

15FY' 14

24FY' 15

24FY' 16

37FY' 17

FY' 18

(%)

38

Book Value per Share

694FY' 14

785FY' 15

989FY' 16

1,206FY' 17

FY' 18

(`)

1,382

5-year Performance Summary (` mn)

Parameters FY' 14 FY' 15 FY' 16 FY' 17 FY' 18 FY' 18/17 (% Change)

Net Sales 426,448 486,055 564,412 669,094 781,048 16.7%EBIT 31,027 42,426 60,642 77,496 93,036 20.1%PBT 36,585 48,682 74,437 99,603 110,034 10.5%PAT 27,830 37,112 53,643 73,502 77,218 5.1%EPS (`) 92 123 178 243 256 5.1%Net Worth 209,780 237,042 298,842 364,311 417,573 14.6%Current Liabilities 81,381 88,213 110,392 132,264 154,421 16.8%Total Liabilities 96,217 98,451 120,558 148,195 176,128 18.8%Non current Assets 164,083 253,531 340,940 424,744 514,487 21.1%Current Assets 141,914 81,962 78,460 87,762 79,214 -9.7%Total Assets 305,997 335,493 419,400 512,506 593,701 15.8%Operating Cash Flow 49,036 63,207 84,845 102,793 117,850 14.6%Free Cash Flow 14,109 31,720 58,518 69,070 79,197 14.7%

Note: FY’ 16, FY’ 17 and FY’ 18 figures are as per Ind-AS.

ROCE

18.2FY' 14

21.6FY' 15

26.9FY' 16

30.1FY' 17

FY' 18

(%)

28.1

Corporate Overview | Key Figures | Quarterly Highlights

EBIT

7.3FY' 14

8.7FY' 15

10.7FY' 16

11.6FY' 17

11.9FY' 18

(%)

4

Quarterly Highlights

Q1 Enhancing employability of country’s youthAnnounces to set up Automobile Skill Enhancement Centres (ASECs) across 15 government run ITIs to train 30,000 youth in automobile related jobs over five years

All-new Dzire is here to re-define the market Authentic sedan styling, plush interiors, superior comfort and convenience features take India’s best selling sedan to a whole new level

Q3Urges car occupants to wear the seat belt - #PehniKya? Launches a pan-India campaign to promote use of the seat belt in cars to enhance the safety of all occupants

Launched CelerioX The bold, sporty and trendy extension of the Celerio family is a synonym of modern and progressive design and technology

Strengthening road safetyAs part of the Company’s focussed efforts to promote safe driving and road safety, joined hands with Government of NCT of Delhi to set up 12 state-of-the-art Automated Driving Test Centres across the city

Drives-in all-new S-CrossLaunched premium urban offering, S-Cross in all-new, bold and assertive form. Gets the acclaimed DDiS200 Smart Hybrid Technology

Q4Alto hits another sales milestoneIndia’s most-loved car continues to rule the entry segment and achieves the unique feat of 35 lakh cumulative sales

Making news at AutoExpo

• Global premiere of ConceptFutureS – an in-house design set to redefine compact vehicle models in India

• India premiere of e-SURVIVOR Concept demonstrated efforts in the direction of electric mobility and innovative and futuristic vision of Maruti Suzuki

• All-new Swift gets a grand reception at Auto Expo 2018 The third generation of the iconic brand is launched in style. Also offered with acclaimed Auto Gear Shift technology

Q2Over 2 million WagonR units sold India’s favourite ‘tall boy’ car crosses a cumulative sales milestone reflecting its popularity

Introducing Maruti Suzuki ARENAThe new corporate identity for the retail sales channel to excite, delight and serve customers by leveraging the power of digital technology

True Value revamped A complete revamp of the True Value operations to make the process of buying pre-owned cars even more engaging, seamless and transparent

NEXA redefines car service in IndiaCustomer experience in after-sales service is taken to the next level with plush workshops, digital 'health cards' for cars and premium lounges

5

Corporate Overview | Sustainability Highlights

T i e r - I s u p p l i e r s l o c a t e d

w i t h i n 10 0 k ms u p p l i e r p l a n t s I S O 14 0 01 c e r t i f i e d

t o u p g r a d e T i e r - I s u p p l i e r s ’ p e r f o r m a n c e

GREEN PROCUREMENT GUIDELINES

ALL TIER-I SUPPLIERS s i g n a t o r y t o

SAFETY AUDITS AND TRAININGS extended to TIER-I SUPPLIERS

R E S P O N S I B L E P R O C U R E M E N T

R E S P O N S I B L E O P E R AT I O N S

L a u n c h e d

COMPREHENSIVEEXCELLENCE PROGRAMME

25,305 MTMETALLIC SCRAP

sent to suppliers for recycling

88% 84%

Sustainability Highlights

6

95%60%

L a u n c h e d ZERO SAI CAMPAIGN

of WATER DEMAND m e t t h r o u g h

RECYCLED WASTE WATER

R E S P O N S I B L E O P E R AT I O N S

ENERGY from CLEAN and RENEWABLE SOURCES

improved compared t o l a s t y e a r

GROUNDWATER CONSUMPTION

only

0.5% o f t o t a l f r e s h w a t e r c o n s u m p t i o n

Ze r o a c c i d e n t d r i v e

t h r o u g h s a f e t y c i r c l e s

16%

in ODS INVENTORY c o m p a r e d t o l a s t y e a r

REDUCTIONENERGY, WATER a n d GHG INTENSITY

7

P R O D U C T S T E WA R D S H I P

f o r s a f e t y, w e i g h t r e d u c t i o n

a n d e m i s s i o n s r e d u c t i o n s e t u p

2020

A u t o m a t e d o i l m a n a g e m e n t

a t 752 w o r k s h o p s

D r y w a s h

a t 1,130 w o r k s h o p s

P a i n t l e s s d e n t r e p a i r

a t 564 w o r k s h o p s

A u t o m a t i c c a r a n d u n d e r b o d y w a s h i n g

a t 1,080 w o r k s h o p s

3 PATENTS granted

9 MODELS

a h e a d o f r e g u l a t o r y t i m e l i n e s

f o r p o w e r t r a i n e l e c t r i f i c a t i o n

E n v i r o n m e n t a l s t e w a r d s h i p a t s e r v i c e w o r k s h o p s :

New

R&D FACILITIES

C O 2 r e d u c t i o n i n n e w m o d e l s t h r o u g h

t e c h n o l o g i c a l a d v a n c e m e n t s

Achieved

5-11%Estimated

b y i n - u s e a l t e r n a t e f u e l d r i v e n v e h i c l e s

830,367 tCO2

s a v e d s i n c e

2005-2006

80 PATENTS filed

Showcased SUZUKI HYBRID SYSTEMa n d e-SURVIVOR CONCEPT

Vehicle crash norms m e t i n

C o mmit te d to launch

ELECTRIC VEHICLE IN INDIA i n

Corporate Overview | Executive Management Team

8

C O L L A B O R AT I N G W I T H S TA K E H O L D E R S

t o u c h e d

7 lakh customers

Service connect activities

w o r k s h o p m a n p o w e r t r a i n e d a t

communication and family connect initiatives

R o b u s t e m p l o y e e e n g a g e m e n t t h r o u g h m u l t i - l e v e l t w o - w a y

o f r e g u l a r

e m p l o y e e s

c o v e r e d u n d e r

training and skill development programmes

FOR CUSTOMER DELIGHT M o b i l e C a r e a p p , M o b i l e S e r v i c e ,

E m e r g e n c y A s s i s t a n c e

Providing

VALUE-ADDED SERVICES

i n a s s o c i a t i o n w i t h M E T I , J a p a n

TRAFFIC MANAGEMENT SYSTEM a n d

DRIVING TEST CENTRES

72,000

Revamped

s a l e s a n d s e r v i c e

n e t w o r k s

spent i n CSR 1̀,250.8 million

77%

i n i t i a t e d t e c h n o l o g y - b a s e d r o a d s a fe t y p r o j e c t s t o

s u p p o r t g o v e r n m e n t ' s r e f o r m e f f o r t s

P r o v i d i n g a u t o m o b i l e s k i l l t r a i n i n g t o y o u t h a t

JAPAN INDIA INSTITUTE FOR MANUFACTURING

service training centres across India

9

Corporate Overview | Product Portfolio

Product Portfolio

Baleno

Dzire

WagonR

Omni

Ciaz

Vitara Brezza

Alto 800

Eeco

10

S-Cross

Ertiga

Alto K10

Gypsy

Ignis

Swift

Celerio

Super Carry*

*Super Carry is sold through Commercial Channel

11

Corporate Overview | Message from the Chairman

Message from the Chairman

My sincere welcome to all our shareholders who have taken the trouble to come here to attend our 37th Annual General Meeting. Your interest in the working of your Company is a source of great motivation to all of us.

2017-18 was in many ways a very eventful year for not only Maruti Suzuki, but for all of industry and business. The much needed measures of economic reform, designed to lead to the formalisation of the under-ground economy, and ensure compliance with tax laws, was welcomed by all those who were deeply concerned about where the growing parallel economy was leading this country and industry. There was a short term blip in the growth of the economy, but very soon growth strengthened and the GDP kept increasing each quarter. The last quarter growth was 7.7%. Income tax payers increased by 26% in 2017-18, and the number of indirect tax payers increased by 50% in the same year. Clearly the tax reforms are resulting in far higher compliance. The available data shows that the

reported employment in the MSME sector has increased sharply, possibly due to more accurate reporting. After the initial misgivings about GST, businessmen are recognising the advantages of tax compliance, in terms of enabling larger investments for modernisation and growth of their companies, and also reducing the interface with various government functionaries. These factors, along with the expected good monsoons are very positive signs for the economy, industry and business.

The negative factors are the potential trade war between the USA and China. This could lead to other countries also being drawn into this unfortunate course of events. Oil prices, and the Iran problem, create a great deal of uncertainty about energy costs this year. Both these events could lead to offsetting some of the benefits of the positive factors.

Global events have highlighted the importance of devising and implementing a long-term mobility policy. Political events have shown how fragile energy security is and how easily the price and supply of oil can be adversely affected for importing countries like us. The rising price of crude has considerably increased the burden on our balance of trade. The Government’s decision to push electric vehicles to replace internal combustion engine driven vehicles was essentially designed to reduce the risks associated with the import of crude from a few countries. The quantum of imports is projected to increase steadily as the economy grows and the need for mobility becomes larger and larger. Even though pollution from cars is still a very small part of the total pollution, this position would change as car ownership grows over the next two decades. Clearly, the country needs to think long term and develop a strategy that would mitigate these risks, both in the short term and the long term.

The Indian car market is unique in that 75% of the cars sold are below 4 metres in length and cost under ` 6.5 lakh at factory level. Electrification of these cars, in the short term, has to be considered in terms of their affordability as well as the creation of the required charging infrastructure all over the country. In the longer term these cars would be electrified, subject to battery and other technology development leading to the affordability barrier being overcome. As we gradually increase the percentage of electrified vehicles, a very large number of internal combustion engine vehicles would also be produced to meet the total demand. It would obviously be better to use alternative technologies and fuels that reduce the consumption of petrol and diesel, rather than produce only electric cars and internal combustion cars. CNG is a clean fuel already being used and its usage can expand subject to the distribution network expanding. It would be a good intermediate step. Ethanol and Methanol hold promise. Hybrid technology is also available.

12

The contract manufacturing arrangement with Suzuki Motors Gujarat is working very satisfactorily. The first production line is in full production and the second line will be commissioned early in 2019. Work has started on the third line and the expected commissioning is early 2020. We hope that the 2 million mark will be reached in the next financial year and the next goal is 3 million cars a year by 2025.

Maruti Suzuki has always focused its attention on doing everything possible to increase the value that a customer gets by using cars produced by the Company. We have always been aware that the long term success of the Company would only be assured if we keep meeting and exceeding customer expectations from our products. The resounding success of many new models introduced in the recent past by your Company is no accident. It reflects the ability of the marketing division to understand customer tastes and desires and the skill of our engineers to produce cars that incorporate the feedback from the marketing executives. We think this is an essential part of being customer-centric.

The cooperation between Suzuki Japan and Toyota Motor Corporation is another step taken to bring the best of technologies for the benefit of customers, and also to promote national objectives. I am sure that this arrangement will create a win-win situation for all of us.

The NEXA channel for sale of some of our products was the result of the understanding that many young customers now wanted a different experience while buying a car. The success of this channel has been quite amazing and reflects the ability to understand customer needs. The ARENA showrooms will give to other customers the benefit of the experience gained in selling cars through the NEXA channel.

The relentless effort to expand the sales and service organisation to all parts of the country, and the decision of the Company to build a land bank for this purpose, is another facet of our concern for the customer. We want to minimise the effort a customer has to make in buying and maintaining his vehicle. The training of sales persons and mechanics continues and is being upgraded as better technologies to benefit the customers become available.

Over the years the quality of locally manufactured parts, and the extent of localisation, have engaged the Company’s attention. Substantial progress has been made. The system of auditing the suppliers has been further improved and strengthened. The component manufacturing industry has also become aware of the huge opportunities it has to attain global size. We are working them to enable them to attain global standards of quality and technology, as the main beneficiary would be the customer.

Efforts to reduce the impact of inflation and rising material costs are another area where the Company has been making efforts to protect customer interests. The soft option of passing on rising costs to the customer has not been adopted by us. Instead, hedging activities have helped in reducing the impact of a weakening Rupee. Kaizen and quality circle activities by our workers have led to continuous improvements in quality and reduction of costs. Engineering personnel continue to work to improve designs and specifications leading to cost reduction. The success of these efforts is evident in the prices of our products rising by an amount far below inflation or material costs.

A new royalty formula was signed by Maruti Suzuki and Suzuki recently. The percentage of royalty will now reflect the rising volumes of sales in India and lead to lower costs of production. The growing capability of our engineering department to design vehicles will also lead to the same result.

Our focus on the customers will continue and will be the core of our strategy. We believe this will give maximum benefits to our shareholders and our customers.

As market leaders we continue to fulfill our obligations to Society. The CSR programme funds are being utilised in full and leading to visible benefits. The strategy of limiting activities under CSR and producing results in shorter periods of time is paying off. In addition the Company is proposing to create two Trusts, one for promoting Research and the other to benefit employees and would fund these by contributing 1% of profits each year. The proposal for the Research Trust would be subject to your approval.

Thank you for your attention. Jai Hind.

R. C. Bhargava Chairman

13

Corporate Overview | Message from the Managing Director & CEO

Message from the Managing Director & CEO

I appreciate this opportunity to convey my thoughts to you through this Annual Report.

This year we celebrated 35 years of signing the Joint Venture agreement between the Government of India and Suzuki Motor Corporation, Japan. The philosophy behind Maruti project was ‘providing good and modern products to the Indian customer at an affordable price’. And even today, we continue with this philosophy.

This milestone gives us a good opportunity to look back and evaluate how Maruti survived and sustained to reach present status.

In our journey so far, the key factor has been the Company’s focus on understanding customers and fulfilling their expectations by offering products and services which suit their needs. Even the choice of Suzuki Motor Corporation as a partner was based on the consideration on how effectively

the Company could become relevant to Indian customers. Over the years, customers have evolved and accordingly our products, services, business model and business processes too have aligned, keeping the customers at the heart of it.

The second aspect in our journey has been how we have always thought of the long term in all our actions. In the 1980s, if we had to scale up our volumes and keep the cars affordable, we needed to develop a component industry to localise manufacturing of the same for us. India has a vast geographical spread with all kinds of roads and terrains; so, a wider dealer network with focus on service was developed for customer convenience. All management decisions today are based on the long-term interest of our customers.

Last but not the least, I am happy about how we have a very good blend of Indian and Japanese cultures in our Company. We were able to combine Japanese shop-floor practices and discipline with Indian innovation and zeal into our operations. Our parent Suzuki, Japan, has been a silent support, trying to look at the future from its global experience and carefully selecting the best technology and products for Indian customers, thus taking away a lot of risks from our operations.

In the financial year 2017-18, the Company posted a double-digit sales growth for the fourth consecutive year, despite slow market growth. Probably the results should be seen in a context that while the market growth was slow in past years, the Company continued to strengthen its foundation for long-term sustainability and did not stop or slowed down efforts for short-term benefits. In the last four years, the Company doubled its sales network; introduced a new sales channel, NEXA, and offered exciting products. The Company also started upgradation of the overall sales experience in the existing channel in line with NEXA. The Company’s entry in the compact SUV segment was well received by customers, helping it become the segment leader. All these efforts were directed towards reaching closer to customers, enriching their experience with the Company and giving them reasons to buy or upgrade their vehicles. The Company also enhanced customer care by reducing their pain points – be it product related or service related. With Suzuki Motor Gujarat taking responsibility for incremental capacity expansion, the Company’s management bandwidth has increased, allowing it to concentrate on customer-centric initiatives. This is reflected in our business performance.

My personal focus is on enhancing the quality of business. This means all aspects of our business should be of high quality, whether it is related to product, service or any interaction with stakeholders. My effort is to inculcate a culture of enhancing the quality of work that each individual performs.

14

We are living in a time when customer preferences and regulations are rapidly changing. In such a situation, the intensity of R&D efforts increases significantly, and scale and speed become critical for success. Suzuki Motor Corporation is stepping up R&D efforts specially to provide better technologies and products to the Company. The Company’s R&D centre at Rohtak is also building its capability and we would like to proceed to the next stage, 'Design in India'.

The financial year 2017-18 also marked the introduction of the landmark tax reform, the Goods and Services Tax (GST). The Company was able to transition into the new tax regime quite smoothly by proactively training its business partners and handholding them during the process. Under GST, tax on hybrid vehicles increased, resulting in the decline in demand for our hybrid models. However, by focussing on other models, the Company was able to make up for the decline in their sales.

During the reporting period, some of the Company’s models, including those launched in the year, such as the third-generation Swift and Dzire, were in high demand. As a result, we faced capacity shortage. Our production team identified and implemented various innovative measures to augment capacity that helped reduce waiting time to a certain extent. Start of Suzuki Motor Gujarat and its timely ramp-up helped achieve a double-digit growth in the year. Now its first plant is working on full capacity and the second plant is planned to be operational in Q4 of the financial year 2018-19.

With record production and sales this year, we are on course to achieve our goal of 2 million in 2020. I feel proud to be associated with all stakeholders – employees, labour unions, dealers, suppliers, investors and other business partners – who are partnering us in this journey. I would like to thank them for their contribution. Their winning mindset and spirit give me confidence to believe that any new heights that together we seek to scale will not be difficult to achieve.

In corporate responsibility, we remain focused on skill development, road safety and community development, in line with national priorities. In skill development, besides equipping youth with the right technical skills that enable them to get jobs, our emphasis is on inculcating the right values and attitude that will help them build a career. The Japan India Institute for Manufacturing (JIM) in Mehsana, Gujarat, received its first batch of students this year. A panel of trade experts as instructors, latest equipment and a special curriculum of soft skills and values make JIM a distinct and model ITI. In road safety, we recognise that use of technology to improve enforcement is the way forward. We are supporting Delhi Government’s effort to reform the driving licence system by setting up 12 test centres, equipped with video analytic technology. We have

also partnered with Delhi Police to use state-of-the art cameras to check traffic violations. Also, the Company identified, through a nationwide survey, that the usage of seat-belts in the country is abysmally low. To promote the use of seat-belts, the Company launched a nationwide safety awareness campaign, #PehniKya?. Further, the Company continues to enjoy the support and goodwill of local communities and is working to upgrade 26 adopted villages as per a village development plan.

I know that shareholders are curious to know our plan to utilise the cash reserve. We have been sensitive to our shareholders’ expectations and in the last few years, the Company has increased its dividend pay-out ratio. In the financial year 2016-17, the upper limit of the band of the dividend pay-out ratio had been increased from 30% to 40% and in the very first year, the Company almost touched this limit. The proposed dividend pay-out ratio in the financial year 2017-18 too is near the upper limit. I would like to draw your attention to the fact that the automobile business is capital-intensive and cyclical in nature. It is prudent to keep some cash, especially at a time when the technological landscape is changing very fast, making the business environment quite uncertain and unpredictable. A resourceful company has more freedom in dealing with unexpected challenges. The Company will continue to invest in the areas like R&D, network expansion and product development, among others. However, if required, the Company may also invest in those areas which may emerge as critical for strengthening its core business and help prepare for the future.

The way in which we have been operating has enabled us attain a high level of efficiency, helping create unparalleled wealth for the shareholders. I look forward to your continued cooperation and trust in helping us progress in the same manner.

Thank you!

Kenichi Ayukawa Managing Director & CEO

15

Board of Directors

Corporate Overview | Board of Directors

Mr. R. C. BhargavaChairman

Mr. K. AyukawaManaging Director & CEO

Mr. O. SuzukiDirector

Mr. T. HasuikeDirector

Mr. T. SuzukiDirector

Mr. K. YamaguchiDirector (Production)

S C N NR

S RRCA

Board Committees

A

N

S

C

Audit Risk Management

Mr. A. Seth*Mr. R. S. Kalsi*

Chief General Manager and

Company Secretary

Mr. S. Grover

Auditor

Deloitte Haskins & Sells LLP

Stakeholders Relationship

CSR

Nomination & Remuneration

R

*Additional Members

16

Mr. D. S. BrarIndependent Director

Ms. R. S. KarnadIndependent Director

Mr. R. P. SinghIndependent Director

Ms. P. ShroffIndependent Director

Mr. K. SaitoDirector

Mr. K. AyabeDirector

NSA CA

AA N

17

1. Mr. K. Ayukawa, Managing Director & CEO

2. Mr. K. Yamaguchi, Director (Production)

3. Mr. R. Gandhi, Sr. Executive Officer (Production)

4. Mr. A. K. Tomer, Executive Officer (Corporate Planning)

5. Mr. H. Taguchi, Executive Officer (Corporate Planning)

6. Mr. S. Y. Siddiqui, Chief Mentor7. Mr. P. K. Roy, Executive Officer (Plant Operations)

8. Mr. A. Seth, Sr. Executive Officer (Finance)

9. Mr. M. Nishio, Executive Officer (Finance & IT)

10. Mr. D. D. Goyal, Executive Expert (Finance)

11. Mr. M. Suzuki, Executive Officer (Engineering)

12. Mr. C. V. Raman, Sr. Executive Officer (Engineering)

13. Mr. P. Panda, Executive Expert (Engineering)

1

Executive Management Team

Corporate Overview | Executive Management Team

23

4

8 9 10 11 12 13

5 6 7

18

14. Mr. T. Garg, Executive Officer (Marketing & Logistics)

15. Mr. T. Hashimoto, Executive Officer (Marketing & Sales)

16. Mr. R. S. Kalsi, Sr. Executive Officer (Marketing & Sales)

17. Mr. S. Grover, Company Secretary18. Ms. M. Chowdhary, General Counsel19. Mr. T. Miki, Executive Officer (Supply Chain)

20. Mr. S. Kakkar, Executive Officer (Supply Chain)

21. Mr. S. Srivastava, Executive Officer (International Marketing)

22. Mr. V. Khazanchi, Executive Officer (Industrial Relations)

23. Mr. Y. Ozawa, Executive Officer (HR)

24. Mr. P. Banerjee, Executive Officer (Service)

25. Mr. D. K. Sethi, Executive Officer (Quality Assurance)

26. Mr. R. Uppal, Sr. Executive Officer (HR & IT)

27. Mr. K. Suzuki, Executive Officer (International Marketing)

14 15 16

17

22 23 24 25 26 27

18 1920

21

19

Statutory Reports | Board's Report

20

Board’s Report

Your Directors have pleasure in presenting the 37th annual report

together with the audited financial statements for the year ended

31st March, 2018.

Financial Results

The Company’s financial performance during the year 2017-18 as

compared to the previous year 2016-17 is summarised below:

(` in million)

Particulars 2017-18 2016-17

Total revenue 840,399 795,663

Profit before tax 110,034 99,603

Tax expense 32,816 26,101

Profit after tax 77,218 73,502

Retained EarningsBalance at the beginning of the year 313,189 250,037

Addition due to amalgamation - 2,475

Profit for the year 77,218 73,502

Other comprehensive income arising from

remeasurement of defined benefit obligation*

(131) (100)

Payment of dividend on equity shares (22,656) (10,573)

Corporate dividend tax paid (4,612) (2,152)

Balance at the end of the year 363,008 313,189

*net of income tax of ` 65 million (previous year ` 58 million)

Financial Highlights

The total revenue (net of excise) was ` 818,082 million as against

` 703,349 million in the previous year showing an increase of

16.31%. Sale of vehicles in the domestic market was 1,653,500

units as compared to 1,444,541 units in the previous year showing

an increase of 14.46%. Total number of vehicles exported was

126,074 units as compared to 124,062 units in the previous year

showing an increase of 1.62%.

Profit before tax (PBT) was ` 110,034 million against ` 99,603

million showing an increase of 10.47% and profit after tax (PAT)

stood at 77,218 million against ` 73,502 million in the previous

year showing an increase of 5.06%.

Dividend

The Board recommends a dividend of ` 80 per equity share of

` 5/- each for the year ended 31st March, 2018 amounting to

` 29,134 million including dividend distribution tax of ` 4,968

million. The Company has formulated a dividend distribution

policy which forms part of the annual report.

Operational Highlights

The operations are exhaustively discussed in the ‘Management

Discussion and Analysis’ forming part of the annual report.

Consolidated Financial Statements

In accordance with Indian Accounting Standard (IND AS) - 110 on

Consolidated Financial Statements read with Indian Accounting

Standard (IND AS) - 28 on Investments in Associates and Joint

Ventures, the audited consolidated financial statements are

provided in the annual report.

A report containing the names of the companies which have

become or ceased to become subsidiaries, joint ventures

and associates, their performance, financial position and their

contribution to the overall performance of the Company as

required by the Companies Act, 2013 (‘Act’) is provided as an

annexure to the consolidated financial statements and hence are

not repeated here for the purpose of brevity. (Form AOC - 1)

Extract of Annual Return

The details forming part of the extract of the Annual Return in

Form MGT-9 is attached as Annexure - A.

Material Subsidiaries

In accordance with Regulation 16(1)(c) of SEBI (Listing Obligations

and Disclosure Requirements) Regulations, 2015 (‘Listing

Regulations’), the Company has a policy for determining material

subsidiaries. The policy is available on the website of the

Company at https://marutistoragenew.blob.core.windows.net/

msilintiwebpdf/Policy_on_subsidiary_companies.pdf

Particulars of Loans, Guarantees and Investments

Details of loans, guarantees and investments covered under the

provisions of Section 186 of the Act are given in the notes forming

part of the financial statements.

Board Meetings

A calendar of meetings is prepared and circulated in advance to

the Directors. During the year, five board meetings were held, the

details of which are given in the Corporate Governance Report.

Audit Committee

For composition of the audit committee, please refer to the

Corporate Governance Report.

Independent Directors

The Company has received declarations of independence in

accordance with the provisions of Section 149 of the Act from

all the Independent Directors. The details of the familiarisation

programmes for the Independent Directors are available on the

website of the Company at https://marutistoragenew.blob.core.

windows.net/msilintiwebpdf/Familiarization_Programme.pdf

21

Directors’ Responsibility Statement

To the best of their knowledge and belief and according to the

information and explanations obtained, in terms of Section 134 of

the Act, your Directors state that:

a) in the preparation of the annual accounts, the applicable

accounting standards have been followed and proper

explanations provided relating to material departures, if any;

b) such accounting policies have been selected and applied

consistently and judgments and estimates made that are

reasonable and prudent so as to give a true and fair view of

the state of affairs of the Company at the end of the financial

year and of the profit of the Company for that period;

c) proper and sufficient care has been taken for the maintenance

of adequate accounting records in accordance with the

provisions of the Act for safeguarding the assets of the

Company and for preventing and detecting fraud and other

irregularities;

d) the annual accounts have been prepared on a going concern

basis;

e) internal financial controls were followed by the Company and

they are adequate and are operating effectively; and

f) proper systems have been devised to ensure compliance

with the provisions of all applicable laws and such systems

are adequate and operating effectively.

Directors and Key Managerial Personnel (KMP)

Ms. Renu Sud Karnad was appointed as an Independent Director

on the Board of the Company with effect from 27th July, 2017.

Mr. Kazunari Yamaguchi was appointed as a Whole-time Director

designated as Director (Production) with effect from 26th January,

2018 in place of Mr. Shigetoshi Torii who resigned with effect from

25th January, 2018.

Risk Management

Pursuant to Regulation 21 of Listing Regulations, the Company

has a Risk Management Committee, the details of which are given

in the Corporate Governance Report. The Company has a risk

management policy and identified risks and taken appropriate

steps for their mitigation. For more details, please refer to the

Management Discussion and Analysis (MD&A).

Internal Financial Controls

Internal financial controls have been discussed under ‘CEO/CFO

Certification’ in the Corporate Governance Report.

Vigil Mechanism

The Company has in place an established and effective mechanism

called the Whistle Blower Policy (Policy). The mechanism under

the Policy has been appropriately communicated within the

organisation. The purpose of this policy is to provide a framework

to promote responsible whistle blowing by employees. It protects

employees wishing to raise a concern about serious irregularities,

unethical behavior, actual or suspected fraud within the Company.

The Chairman of the audit committee is the ombudsperson and

direct access has been provided to the employees to contact him

through e-mail, post and telephone for reporting any matter.

Related Party Transactions

The Company has a policy on related party transactions which is

available on the Company’s website at https://marutistoragenew.

blob.core.windows.net/msilintiwebpdf/Policy_on_Related_Party_

Transactions.pdf. In terms of Section 134(3) (h) of the Act read with

Rule 15 of the Companies (Meetings of Board and its Powers) Rules,

2014, there was no transaction to be reported in Form AOC - 2.

Performance Evaluation

Pursuant to the provisions of the Act and the Listing Regulations,

the Board has carried out the annual performance evaluation

of its own performance, the Directors individually as well as the

evaluation of its committees. The evaluation criteria, inter-alia,

covered various aspects of the Board’s functioning including

its composition, attendance of Directors, participation levels,

bringing specialised knowledge for decision making, smooth

functioning of the Board and effective decision making. The Board

and its committees had been highly effective in achieving their

respective charters of monitoring the overall performance of the

Company, overseeing the performance of the management and

thus overall upholding high standards of corporate governance.

The board meetings were well run and the members of the Board

acted with sufficient diligence and care.

The performance of individual directors was evaluated on

parameters such as level of engagement and contribution to the

affairs of the Company including by way of attendance in board/

committee meetings, level of independence of judgement, care

undertaken in safeguarding the interest of the Company and

its minority shareholders. Considering the high performance

of the Company in most spheres and the value delivered to all

stakeholders, including customers, shareholders, the community

and others, it was apparent that Directors had been diligent,

meticulous and faithful in the performance of their duties. The

Directors expressed their satisfaction with the evaluation process.

The criteria laid down by the Nomination and Remuneration

Committee for evaluation of performance of Independent

Directors included, inter-alia, the extent of engagement including

attendance at the board/ committee meetings, ability to

discharge their duties and provide effective leadership, exercise

independence of judgement and safeguarding the interest of all

the stakeholders including the minority shareholders.

Nomination and Remuneration Policy

The Nomination and Remuneration Policy is attached as

Annexure - B.

Corporate Social Responsibility (CSR)

The annual report on CSR activities containing details of CSR

Policy, composition of the CSR committee and other prescribed

details are given in Annexure - C.


22

Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Company has in place an Anti-Sexual Harassment Policy in

line with the requirements of the Sexual Harassment of Women at

Workplace (Prevention, Prohibition and Redressal) Act, 2013. The

Internal Complaints Committee (ICC) has been set up to redress

complaints received regarding sexual harassment. During the

period under review, two complaints were received by the ICC.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

Information in accordance with Section 134(3) (m) of the Act read

with Rule 8 of the Companies (Accounts) Rules, 2014 is attached

as Annexure - D.

Corporate Governance

The Company has complied with the corporate governance

requirements, as stipulated under the various regulations of

Listing Regulations. A certificate of compliance by auditors shall

form part of the annual report.

Secretarial Audit Report

In accordance with the provisions of Section 204 of the Act read

with The Companies (Appointment and Remuneration of Managerial

Personnel) Rules, 2014, the Board appointed M/s RMG & Associates,

a firm of Company Secretaries in practice to undertake the Secretarial

Audit for 2017-18. The report on secretarial audit is attached as

Annexure - E. The report does not contain any qualification.

Secreterial Standards

The Company has complied with the Secretarial Standards issued

by the Institute of Company Secretaries of India.

Management Discussion and Analysis Report

The annual report has a detailed report on management discussion

and analysis.

Personnel

As required by the provisions of Section 197 of the Act read

with Rule 5 of The Companies (Appointment and Remuneration

of Managerial Personnel) Rules, 2014 the particulars of the

employees are set out in Annexure - F. However, as per the

provisions of Section 136 of the Act, the annual report is being

sent to all the members of the Company excluding the aforesaid

information. The said information is available for inspection by the

members at the registered office of the Company up to the date of

the ensuing Annual General Meeting. Any member interested in

obtaining such particulars may write to the Company Secretary at

the registered office of the Company.

Cost Auditors

In accordance with the provisions of Section 148 of the Act,

read with Companies (Cost Records and Audit) Rules, 2014,

M/s R.J. Goel & Co., Cost Accountants, New Delhi (Registration No.

000026) were appointed as the Cost Auditors of the Company to

carry out the cost audit for 2018-19.

Auditors

The auditors, M/s Deloitte Haskins & Sells LLP were appointed

in the 35th Annual General Meeting and hold their office till the

conclusion of the 40th Annual General Meeting.

Crisil Ratings

The Company was awarded the highest financial credit rating of

AAA/stable (long term) and A1+ (short term) on its bank facilities

by CRISIL. The rating underscores the financial strength of the

Company in terms of the highest safety with regard to timely

fulfillment of its financial obligations.

Quality

The Company was awarded ISO/IEC 27001:2005 certification

by STQC Directorate (Standardisation, Testing and Quality

Certificate), Ministry of Communications and Information

Technology, Government of India after re-assessment. In 2015,

the certification has been upgraded to 27001:2013.

The Company has established and is maintaining an environment

management system. During the year, re-certification for ISO-

14001 was carried out by M/s AVI, Belgium for the manufacturing

plants located at Gurgaon, Manesar and R&D Centre in Rohtak.

The auditors recommended continuance of ISO-14001 for all

manufacturing facilities.

The quality management system of the Company is certified

after the ISO 9001:2015 standard. Re-assessment of the

quality systems is done at regular intervals and re-certification

assessments are done every three years by an accredited

third-party agency. The Company has an internal assessment

mechanism to verify and ensure adherence to defined quality

systems across the Company.

Awards/Recognition/Rankings

Mr. Kenichi Ayukawa was awarded ‘Champion of Champions’,

Best CEO (Large Companies) and Best CEO (Auto & Ancillaries)

by Business Today. He was also awarded ‘Autocar Professional

Man of the year’ by Autocar.

The Company received many awards/recognitions/rankings

during the year. Some of these are mentioned hereunder:

• ‘Company of the year, 2017’ by The Economic Times and

Business Standard.

23

• ‘MNC of the year’ by AIMA at Managing India Awards, 2017.

• ‘Car manufacturer of the year’ by NDTV at NDTV Car and Bike

Awards.

• ‘Manufacturer of the year’ by Autocar, Times of India, Overdrive

and Top Gear.

• Golden Peacock Training Award and Occupational Health and

Safety Award.

• ‘Corporate Social Responsibility Champion of the Year’ by

Motoring World.

• ‘2 GOOD’ rating by The Economic Times for all-round excellence

in the field of Corporate Social Responsibility.

• ‘Certificate of Appreciation’ for best Corporate Social

Responsibility practices by Haryana Government.

• Amar Ujala Corporate Social Responsibility award for

outstanding work in the field.

• ‘PR team of the year’ and ‘HDFC ERGO Safety Award’ by NDTV

at NDTV Car and Bike Awards for ‘#PehniKya?’ campaign.

• Gold at ASSOCHAM’s Skilling India Awards, 2017.

• Rajasthan Government Award for employing highest number of

youth.

• ‘Best Solution in India’ to the Treasury team at Adam Smith Asia

Award 2017.

• Dzire won the following awards:

- ‘Best of 2017’ by Auto X.

- ‘Compact car of the year’ by News 18 TV and CNBC

Overdrive.

- ‘Sub-compact sedan of the year’ by NDTV Car & Bike Awards,

Smart Photography and T3.

- ‘Compact Sedan of the year’ by Auto Car, Motoring World and

Times Auto EVO.

- ‘Sub 4 meter car’ and ‘Automobile of the year’ by The Auto

Show.

• Ignis won the following awards:

- ‘Hatchback of the year’ by NDTV Car & Bike Show, Times

Auto EVO & BBC Top Gear.

- ‘Compact Car of the Year’ & ’Design of the year’ by Motoring

World.

• Baleno RS won the award for ‘Hatchback of the year’ by News

18 TV.

• S-Cross won ‘Crossover of the Year’ by Motoring World.

• Concept Future - S won Best Concept car at Auto Expo 2018 by

NDTV Car & Bike and SIAM awards for excellence.

• Super Carry was awarded ‘Commercial Vehicle of the Year’ and

‘Small Commercial Vehicle (SCV) of the year’ by Apollo Tyres

Commercial Vehicle Magazine.

Acknowledgment

The Board of Directors would like to express its sincere thanks

for the co-operation and advice received from the Government

of India, Haryana Government and the Gujarat Government.

Your Directors also take this opportunity to place on record their

gratitude for timely and valuable assistance and support received

from Suzuki Motor Corporation, Japan. The Board also places

on record its appreciation for the enthusiastic co-operation,

hard work and dedication of all the employees of the Company

including the Japanese staff, dealers, vendors, customers,

business associates, auto finance companies, state government

authorities and all concerned without which it would not have

been possible to achieve all round progress and growth of the

Company. The Directors are thankful to the members for their

continued patronage.

For and on behalf of the Board of Directors

R.C. Bhargava Kenichi AyukawaChairman Managing Director & CEO

New Delhi

27th April, 2018


24

Annexure - AForm No. MGT-9Extract of Annual ReturnAs on the financial year ended on 31st March, 2018 [Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12 (1) of the Companies (Management and Administration) Rules, 2014]

I. Registration and other Details:

i. CIN L34103DL1981PLC011375

ii. Registration Date 24/02/1981

iii. Name of the Company Maruti Suzuki India Limited

iv. Category/sub-category of the Company Company limited by shares

v. Address of the registered office and contact details Plot No. 1, Nelson Mandela Road

Vasant Kunj, New Delhi - 110 070

Ph. no.: 011-46781134

vi. Whether listed company Yes

vii. Name, address and contact details of registrar and transfer agent,

if any

Karvy Computershare Private Limited

Karvy Selenium Tower- B, Plot 31-32

Gachibowli, Financial District

Nanakramguda, Hyderabad- 500 032

Ph. no.: 040-67162222

Fax no.: 040-23001153

Toll free No.: 1800-345-4001

II. Principal Business Activities of the Company:

All the business activities contributing 10% or more of the total turnover of the Company:

Sl.

No.

Name and description of the main products/ services NIC code of the product/

service

% to total turnover of the

Company

1. Manufacture of passenger cars 29101 89.19%

III. Particulars of Holding, Subsidiary and Associate Companies:

Sl.

No.

Name and address of the Company CIN/GLN Holding/

Subsidiary/

Associate

% of shares

held

Applicable section

1 Suzuki Motor Corporation N.A. Holding 56.21% 2(46)

2 True Value Solutions Limited U74999DL2002PLC113814 Subsidiary 100.00% 2(87)

3 J.J. Impex (Delhi) Private Limited U74140DL1976PTC008245 Subsidiary 50.87% 2(87)

4 Bharat Seats Limited L34300DL1986PLC023540 Associate 14.81% 2(6)

5 Caparo Maruti Limited U74899DL1994PLC058269 Associate 25.00% 2(6)

6 Hanon Climate Systems India Private Limited

(Formerly Halla Visteon Climate Systems India

Limited)

U34300DL1991PTC046656 Associate 39.00% 2(6)

7 Jay Bharat Maruti Limited L29130DL1987PLC027342 Associate 29.28% 2(6)

8 Krishna Maruti Limited U34300HR1991PLC032012 Associate 15.80% 2(6)

9 Machino Plastics Limited L25209HR2003PLC035034 Associate 15.35% 2(6)

10 SKH Metals Limited U74130HR1986PLC023655 Associate 37.03% 2(6)

11 Nippon Thermostat (India) Limited U29309TN1994PLC027555 Associate 10.00% 2(6)

12 Bellsonica Auto Component India Private

Limited

U35923HR2006FTC036301 Associate 30.00% 2(6)

13 Mark Exhaust Systems Limited U32204DL1993PLC055905 Associate 44.37% 2(6)

14 FMI Automotive Components Private Limited U34201DL2007PTC170043 Associate 49.00% 2(6)

15 Maruti Insurance Broking Private Limited U74999DL2010PTC210739 Associate 46.26% 2(6)

16 Manesar Steel Processing India Private Limited U27205HR2010PTC041264 Associate 11.83% 2(6)

17 Magneti Marelli Powertrain India Private Limited U40300HR2007PTC046166 Joint Venture 19.00% 2(6)

18 Plastic Omnium Auto Inergy Manufacturing India

Private Limited (Formerly Inergy Automotive

Systems Manufacturing India Private Limited)

U35914HR2010PTC040501 Joint Venture 26.00% 2(6)

25

IV. Shareholding Pattern (Equity Share Capital Breakup as Percentage of Total Equity)

i) Category-wise shareholding

Category of shareholders No. of shares held at the beginning of the year No. of shares held at the end of the year %

change

during the

year

Demat Physical Total % of total

share

Demat Physical Total % of total

share

A. Promoters1. Indian a) Individual/HUF 0 0 0 0.00 0 0 0 0.00 0.00

b) Central Govt. 0 0 0 0.00 0 0 0 0.00 0.00

c) State Govt(s) 0 0 0 0.00 0 0 0 0.00 0.00

d) Bodies Corp. 0 0 0 0.00 0 0 0 0.00 0.00

e) Banks/FI 0 0 0 0.00 0 0 0 0.00 0.00

f) Any Other… 0 0 0 0.00 0 0 0 0.00 0.00

Sub-Total (A) (1):- 0 0 0 0.00 0 0 0 0.00 0.002. Foreign a) NRIs-Individuals 0 0 0 0.00 0 0 0 0.00 0.00

b) Other-Individuals 0 0 0 0.00 0 0 0 0.00 0.00

c) Bodies Corp. 169,788,440 0 169,788,440 56.21 169,788,440 0 169,788,440 56.21 0.00

d) Banks/FI 0 0 0 0.00 0 0 0 0.00 0.00

e) Any Other (Qualified Foreign

Investor)

0 0 0 0.00 0 0 0 0.00 0.00

Sub Total (A) (2):- 169,788,440 0 169,788,440 56.21 169,788,440 0 169,788,440 56.21 0.00Total Shareholding of Promoter (A)=(A)(1)+(A)(2)

169,788,440 0 169,788,440 56.21 169,788,440 0 169,788,440 56.21 0.00

B. Public Shareholding1. Institutions a) Mutual Funds/UTI 19,599,740 0 19,599,740 6.49 1,733,8791 0 17,338,791 5.74 -0.75

b) Banks/ FI 17,445,029 0 17,445,029 5.77 17,267,709 0 17,267,709 5.72 -0.05

c) Central Govt. 0 0 0 0 0 0 0 0.00 0.00

d) State Govt(s) 0 0 0 0 0 0 0 0.00 0.00

e) Venture Capital Funds 0 0 0 0 0 0 0 0.00 0.00

f) Insurance Companies 0 0 0 0 0 0 0 0.00 0.00

g) FIIs 74,166,678 0 74,166,678 24.55 76,093,800 0 76,093,800 25.19 0.64

h) Foreign Venture Capital Funds 0 0 0 0 0 0 0 0.00 0.00

i) Any other (Qualified Foreign

Investor)

0 0 0 0 0 0 0 0.00 0.00

Sub-total (B)(1):- 111,211,447 0 111,211,447 36.82 110,700,300 0 110,700,300 36.65 -0.172) Non- Institutions a) Bodies Corp. 10,358,891 0 10,358,891 3.43 8,804,292 0 8,804,292 2.91 -0.51

b) Individual

i) Individual shareholders

holding nominal share capital

upto ` 1 lakh

8,023,393 4,330 8,023,393 2.66 10,025,205 0 10,029,732 3.32 0.66

ii) Individual shareholders

holding nominal share capital

in excess of ` 1 lakh

396,083 0 396,083 0.13 447,923 4,527 447,923 0.15 0.02

c) Others

i) Foreign Nationals 248 0 248 0.00 177 0 177 0.00 0.00

ii) Non Resident Indian 473,848 0 473,848 0.16 581,524 0 581,524 0.19 0.03

iii) Clearing Member 594,809 0 594,809 0.18 194,230 0 194,230 0.06 -0.12

iv) Trusts 1,228,571 0 1,228,571 0.41 1,533,442 0 1,533,442 0.51 0.10

v) Qualified Foreign Investor 0 0 0 0.00 0 0 0 0.00 0.00

Sub-total (B)(2):- 21,075,843 4,330 21,080,173 6.97 21,586,793 4527 21,591,320 7.14 0.17Total Public Shareholding(B)=(B)(1)+ (B)(2)

132,287,290 4,330 132,291,620 43.79 132,287,093 4527 132,291,620 43.79 0.00

C. Shares held by Custodian for GDRs & ADRs

0 0 0 0 0 0 0 0 0

Grand Total (A+B+C) 302,075,730 4,330 302,080,060 100.0 302,075,533 4,527 302,080,060 100.00 0.00


26

ii) Shareholding of Promoters

Sl.

No

Shareholder’s

NameShareholding at the beginning of the year Shareholding at the end of the year % change in

shareholding

during the yearNo. of shares % of total

shares

of the

Company

% of shares

pledged/

encumbered to

total shares

No. of shares % of total

shares

of the

Company

% of shares

pledged/

encumbered to

total shares

1. Suzuki Motor Corporation 169,788,440 56.21 - 169,788,440 56.21 - -

Total 169,788,440 56.21 - 169,788,440 56.21 - -

iii) Change in promoter’s shareholding : There is no change

Shareholding at the beginning of the year Cumulative shareholding during the year

No. of shares % of total shares of

the Company

No. of shares % of total shares of

the Company

At the beginning of the year N.A. N.A. N.A. N.A.

Date wise increase/

decrease in promoter’s shareholding during the year specifying

the reason for increase/ decrease (e.g. allotment/ transfer/

bonus/sweat equity etc):

N.A. N.A. N.A. N.A.

At the end of the year N.A. N.A. N.A. N.A.

iv) Shareholding pattern of top ten shareholders - Other than directors, promoters and holders of GDRs and ADRs:

Sl.

No.

Name of the Share Holder Shareholding Cumulative shareholding

during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

1 Life Insurance Corporation of

India P & GS Fund

16007292 5.30 31/03/2017 16007292 5.30

07/04/2017 -10000 Transfer 15997292 5.30

14/04/2017 -5500 Transfer 15991792 5.29

12/05/2017 -52273 Transfer 15939519 5.28

19/05/2017 -82000 Transfer 15857519 5.25

26/05/2017 -99797 Transfer 15757722 5.22

02/06/2017 -145344 Transfer 15612378 5.17

09/06/2017 -300599 Transfer 15311779 5.07

16/06/2017 -236962 Transfer 15074817 4.99

23/06/2017 -18490 Transfer 15056327 4.98

30/06/2017 -1400 Transfer 15054927 4.98

07/07/2017 -2500 Transfer 15052427 4.98

14/07/2017 -2400 Transfer 15050027 4.98

21/07/2017 -1800 Transfer 15048227 4.98

28/07/2017 -3800 Transfer 15044427 4.98

04/08/2017 -7400 Transfer 15037027 4.98

11/08/2017 -6000 Transfer 15031027 4.98

15/09/2017 -1500 Transfer 15029527 4.98

12/01/2018 570 Transfer 15030097 4.98

12/01/2018 -570 Transfer 15029527 4.98

19/01/2018 630 Transfer 15030157 4.98

19/01/2018 -49297 Transfer 14980860 4.96

26/01/2018 -26600 Transfer 14954260 4.95

02/02/2018 -100 Transfer 14954160 4.95

09/02/2018 630 Transfer 14954790 4.95

09/02/2018 -630 Transfer 14954160 4.95

16/02/2018 37643 Transfer 14991803 4.96

23/02/2018 265800 Transfer 15257603 5.05

02/03/2018 175700 Transfer 15433303 5.11

09/03/2018 156201 Transfer 15589504 5.16

31/03/2018 15589504 5.16

27

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

2. HDFC Trustee Co Ltd A/c

HDFC Dual Advantage Fund I

3731295 1.24 31/03/2017 3731295 1.24

07/04/2017 1035 Transfer 3732330 1.24

07/04/2017 -133 Transfer 3732197 1.24

14/04/2017 -47 Transfer 3732150 1.24

21/04/2017 -16035 Transfer 3716115 1.23

28/04/2017 -528 Transfer 3715587 1.23

05/05/2017 85172 Transfer 3800759 1.26

05/05/2017 -31099 Transfer 3769660 1.25

12/05/2017 -3400 Transfer 3766260 1.25

19/05/2017 33 Transfer 3766293 1.25

19/05/2017 -18072 Transfer 3748221 1.24

26/05/2017 100000 Transfer 3848221 1.27

26/05/2017 -91 Transfer 3848130 1.27

02/06/2017 82460 Transfer 3930590 1.30

02/06/2017 -4827 Transfer 3925763 1.30

09/06/2017 22350 Transfer 3948113 1.31

09/06/2017 -7685 Transfer 3940428 1.30

16/06/2017 129 Transfer 3940557 1.30

16/06/2017 -23 Transfer 3940534 1.30

23/06/2017 69 Transfer 3940603 1.30

23/06/2017 -452424 Transfer 3488179 1.15

30/06/2017 51 Transfer 3488230 1.15

30/06/2017 -182990 Transfer 3305240 1.09

07/07/2017 103 Transfer 3305343 1.09

07/07/2017 -225000 Transfer 3080343 1.02

14/07/2017 14 Transfer 3080357 1.02

14/07/2017 -151869 Transfer 2928488 0.97

21/07/2017 -93474 Transfer 2835014 0.94

28/07/2017 -143044 Transfer 2691970 0.89

04/08/2017 119 Transfer 2692089 0.89

04/08/2017 -179348 Transfer 2512741 0.83

11/08/2017 657 Transfer 2513398 0.83

11/08/2017 -231407 Transfer 2281991 0.76

18/08/2017 11868 Transfer 2293859 0.76

18/08/2017 -143908 Transfer 2149951 0.71

25/08/2017 162 Transfer 2150113 0.71

25/08/2017 -135000 Transfer 2015113 0.67

01/09/2017 16464 Transfer 2031577 0.67

01/09/2017 -136000 Transfer 1895577 0.63

08/09/2017 71 Transfer 1895648 0.63

08/09/2017 -1531 Transfer 1894117 0.63

15/09/2017 -62165 Transfer 1831952 0.61

22/09/2017 5100 Transfer 1837052 0.61

22/09/2017 -45190 Transfer 1791862 0.59

29/09/2017 37562 Transfer 1829424 0.61

29/09/2017 -194241 Transfer 1635183 0.54

06/10/2017 1397 Transfer 1636580 0.54

06/10/2017 -11 Transfer 1636569 0.54

13/10/2017 4979 Transfer 1641548 0.54

13/10/2017 -128525 Transfer 1513023 0.50

20/10/2017 -112518 Transfer 1400505 0.46

27/10/2017 773 Transfer 1401278 0.46

27/10/2017 -61808 Transfer 1339470 0.44

31/10/2017 50 Transfer 1339520 0.44

31/10/2017 -27 Transfer 1339493 0.44

03/11/2017 1160 Transfer 1340653 0.44

03/11/2017 -1229 Transfer 1339424 0.44

10/11/2017 747 Transfer 1340171 0.44

10/11/2017 -63050 Transfer 1277121 0.42

17/11/2017 214 Transfer 1277335 0.42

17/11/2017 -98808 Transfer 1178527 0.39

24/11/2017 41 Transfer 1178568 0.39

24/11/2017 -29408 Transfer 1149160 0.38


28

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

01/12/2017 15017 Transfer 1164177 0.39

01/12/2017 -8 Transfer 1164169 0.39

08/12/2017 130 Transfer 1164299 0.39

08/12/2017 -55050 Transfer 1109249 0.37

15/12/2017 98 Transfer 1109347 0.37

15/12/2017 -74023 Transfer 1035324 0.34

22/12/2017 525 Transfer 1035849 0.34

22/12/2017 -72302 Transfer 963547 0.32

29/12/2017 -270 Transfer 963277 0.32

05/01/2018 25666 Transfer 988943 0.33

05/01/2018 -25100 Transfer 963843 0.32

12/01/2018 23099 Transfer 986942 0.33

12/01/2018 -111208 Transfer 875734 0.29

19/01/2018 4879 Transfer 880613 0.29

19/01/2018 -41071 Transfer 839542 0.28

26/01/2018 3600 Transfer 843142 0.28

26/01/2018 -60 Transfer 843082 0.28

02/02/2018 303 Transfer 843385 0.28

02/02/2018 -28465 Transfer 814920 0.27

09/02/2018 2495 Transfer 817415 0.27

09/02/2018 -81137 Transfer 736278 0.24

16/02/2018 188 Transfer 736466 0.24

16/02/2018 -8446 Transfer 728020 0.24

23/02/2018 296 Transfer 728316 0.24

23/02/2018 -201474 Transfer 526842 0.17

02/03/2018 447 Transfer 527289 0.17

02/03/2018 -10000 Transfer 517289 0.17

09/03/2018 4390 Transfer 521679 0.17

09/03/2018 -49738 Transfer 471941 0.16

16/03/2018 7694 Transfer 479635 0.16

23/03/2018 280 Transfer 479915 0.16

30/03/2018 429 Transfer 480344 0.16

30/03/2018 -101033 Transfer 379311 0.13

31/03/2018 379311 0.13

3 Abu Dhabi Investment Authority

- Baihu

3197971 1.06 31/03/2017 3197971 1.06

28/04/2017 1723 Transfer 3199694 1.06

19/05/2017 -133222 Transfer 3066472 1.02

02/06/2017 -31486 Transfer 3034986 1.00

16/06/2017 -302724 Transfer 2732262 0.90

23/06/2017 1140 Transfer 2733402 0.90

30/06/2017 2329 Transfer 2735731 0.91

11/08/2017 -44500 Transfer 2691231 0.89

18/08/2017 -8350 Transfer 2682881 0.89

08/09/2017 1990 Transfer 2684871 0.89

15/09/2017 690 Transfer 2685561 0.89

22/09/2017 783 Transfer 2686344 0.89

22/09/2017 -107820 Transfer 2578524 0.85

29/09/2017 -17300 Transfer 2561224 0.85

06/10/2017 1438 Transfer 2562662 0.85

06/10/2017 -45000 Transfer 2517662 0.83

13/10/2017 -103600 Transfer 2414062 0.80

20/10/2017 -36740 Transfer 2377322 0.79

27/10/2017 -9060 Transfer 2368262 0.78

17/11/2017 -48323 Transfer 2319939 0.77

24/11/2017 22748 Transfer 2342687 0.78

24/11/2017 -75241 Transfer 2267446 0.75

01/12/2017 69000 Transfer 2336446 0.77

01/12/2017 -2793 Transfer 2333653 0.77

08/12/2017 -3807 Transfer 2329846 0.77

15/12/2017 3359 Transfer 2333205 0.77

29/12/2017 -93770 Transfer 2239435 0.74

12/01/2018 -16500 Transfer 2222935 0.74

19/01/2018 2826 Transfer 2225761 0.74

29

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

19/01/2018 -63000 Transfer 2162761 0.72

26/01/2018 -91500 Transfer 2071261 0.69

02/02/2018 -20000 Transfer 2051261 0.68

09/02/2018 -20000 Transfer 2031261 0.67

23/02/2018 -91000 Transfer 1940261 0.64

02/03/2018 3490 Transfer 1943751 0.64

02/03/2018 -3911 Transfer 1939840 0.64

23/03/2018 -2162 Transfer 1937678 0.64

30/03/2018 34915 Transfer 1972593 0.65

30/03/2018 -4228 Transfer 1968365 0.65

31/03/2018 1968365 0.65

4 Aditya Birla Sun Life Trustee

Private Limited A/c

2332164 0.77 31/03/2017 2332164 0.77

07/04/2017 83256 Transfer 2415420 0.80

07/04/2017 -11954 Transfer 2403466 0.80

14/04/2017 56002 Transfer 2459468 0.81

21/04/2017 25900 Transfer 2485368 0.82

21/04/2017 -8100 Transfer 2477268 0.82

28/04/2017 27650 Transfer 2504918 0.83

28/04/2017 -256 Transfer 2504662 0.83

05/05/2017 -15100 Transfer 2489562 0.82

12/05/2017 -6700 Transfer 2482862 0.82

19/05/2017 -9900 Transfer 2472962 0.82

26/05/2017 5850 Transfer 2478812 0.82

26/05/2017 -351 Transfer 2478461 0.82

02/06/2017 -5600 Transfer 2472861 0.82

09/06/2017 19800 Transfer 2492661 0.83

09/06/2017 -4150 Transfer 2488511 0.82

16/06/2017 27500 Transfer 2516011 0.83

16/06/2017 -6700 Transfer 2509311 0.83

23/06/2017 600 Transfer 2509911 0.83

23/06/2017 -7631 Transfer 2502280 0.83

30/06/2017 -19308 Transfer 2482972 0.82

07/07/2017 10000 Transfer 2492972 0.83

07/07/2017 -7530 Transfer 2485442 0.82

14/07/2017 -3300 Transfer 2482142 0.82

21/07/2017 56450 Transfer 2538592 0.84

21/07/2017 -9151 Transfer 2529441 0.84

28/07/2017 33900 Transfer 2563341 0.85

28/07/2017 -9220 Transfer 2554121 0.85

04/08/2017 4400 Transfer 2558521 0.85

04/08/2017 -6850 Transfer 2551671 0.84

11/08/2017 29 Transfer 2551700 0.84

11/08/2017 -12428 Transfer 2539272 0.84

18/08/2017 25290 Transfer 2564562 0.85

18/08/2017 -5700 Transfer 2558862 0.85

25/08/2017 36 Transfer 2558898 0.85

01/09/2017 25 Transfer 2558923 0.85

01/09/2017 -38850 Transfer 2520073 0.83

08/09/2017 -6800 Transfer 2513273 0.83

15/09/2017 3872 Transfer 2517145 0.83

15/09/2017 -872 Transfer 2516273 0.83

22/09/2017 300 Transfer 2516573 0.83

22/09/2017 -9430 Transfer 2507143 0.83

29/09/2017 12175 Transfer 2519318 0.83

06/10/2017 30450 Transfer 2549768 0.84

13/10/2017 19950 Transfer 2569718 0.85

13/10/2017 -2200 Transfer 2567518 0.85

20/10/2017 20250 Transfer 2587768 0.86

20/10/2017 -5000 Transfer 2582768 0.85

27/10/2017 33750 Transfer 2616518 0.87

27/10/2017 -10000 Transfer 2606518 0.86

31/10/2017 -14650 Transfer 2591868 0.86

03/11/2017 -25275 Transfer 2566593 0.85


30

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

10/11/2017 -16050 Transfer 2550543 0.84

17/11/2017 14123 Transfer 2564666 0.85

17/11/2017 -10000 Transfer 2554666 0.85

24/11/2017 750 Transfer 2555416 0.85

24/11/2017 -800 Transfer 2554616 0.85

01/12/2017 -39819 Transfer 2514797 0.83

08/12/2017 -59725 Transfer 2455072 0.81

15/12/2017 -12325 Transfer 2442747 0.81

22/12/2017 -66845 Transfer 2375902 0.79

29/12/2017 14000 Transfer 2389902 0.79

05/01/2018 17550 Transfer 2407452 0.80

05/01/2018 -16009 Transfer 2391443 0.79

12/01/2018 24750 Transfer 2416193 0.80

12/01/2018 -39643 Transfer 2376550 0.79

19/01/2018 1913 Transfer 2378463 0.79

19/01/2018 -25725 Transfer 2352738 0.78

26/01/2018 21750 Transfer 2374488 0.79

26/01/2018 -104300 Transfer 2270188 0.75

02/02/2018 9300 Transfer 2279488 0.75

02/02/2018 -32350 Transfer 2247138 0.74

09/02/2018 20000 Transfer 2267138 0.75

09/02/2018 -3640 Transfer 2263498 0.75

16/02/2018 1350 Transfer 2264848 0.75

02/03/2018 208319 Transfer 2473167 0.82

02/03/2018 -12980 Transfer 2460187 0.81

09/03/2018 95769 Transfer 2555956 0.85

16/03/2018 30000 Transfer 2585956 0.86

16/03/2018 -11500 Transfer 2574456 0.85

23/03/2018 21902 Transfer 2596358 0.86

23/03/2018 -46921 Transfer 2549437 0.84

30/03/2018 15038 Transfer 2564475 0.85

30/03/2018 -595 Transfer 2563880 0.85

31/03/2018 2563880 0.85

5. Nomura India Investment Fund

Mother Fund

891210 0.30 31/03/2017 891210 0.30

26/05/2017 162394 Transfer 1053604 0.35

09/06/2017 64606 Transfer 1118210 0.37

16/06/2017 280024 Transfer 1398234 0.46

30/06/2017 68625 Transfer 1466859 0.49

14/07/2017 21668 Transfer 1488527 0.49

21/07/2017 75180 Transfer 1563707 0.52

28/07/2017 119378 Transfer 1683085 0.56

04/08/2017 31166 Transfer 1714251 0.57

18/08/2017 50000 Transfer 1764251 0.58

01/09/2017 114111 Transfer 1878362 0.62

29/09/2017 86116 Transfer 1964478 0.65

06/10/2017 118538 Transfer 2083016 0.69

13/10/2017 90166 Transfer 2173182 0.72

09/02/2018 87376 Transfer 2260558 0.75

31/03/2018 2260558 0.75

6 SBI Dual Advantage Fund -

Series XXII

1482552 0.49 31/03/2017 1482552 0.49

07/04/2017 61000 Transfer 1543552 0.51

07/04/2017 -677 Transfer 1542875 0.51

14/04/2017 14352 Transfer 1557227 0.52

21/04/2017 69222 Transfer 1626449 0.54

21/04/2017 -600 Transfer 1625849 0.54

28/04/2017 7206 Transfer 1633055 0.54

28/04/2017 -43 Transfer 1633012 0.54

05/05/2017 5688 Transfer 1638700 0.54

05/05/2017 -28369 Transfer 1610331 0.53

12/05/2017 5748 Transfer 1616079 0.53

12/05/2017 -13283 Transfer 1602796 0.53

19/05/2017 8348 Transfer 1611144 0.53

31

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

19/05/2017 -1157 Transfer 1609987 0.53

26/05/2017 18407 Transfer 1628394 0.54

26/05/2017 -341 Transfer 1628053 0.54

02/06/2017 10694 Transfer 1638747 0.54

02/06/2017 -166 Transfer 1638581 0.54

09/06/2017 10543 Transfer 1649124 0.55

09/06/2017 -315 Transfer 1648809 0.55

16/06/2017 13612 Transfer 1662421 0.55

23/06/2017 4498 Transfer 1666919 0.55

23/06/2017 -61148 Transfer 1605771 0.53

30/06/2017 10938 Transfer 1616709 0.54

07/07/2017 15402 Transfer 1632111 0.54

07/07/2017 -1400 Transfer 1630711 0.54

14/07/2017 8642 Transfer 1639353 0.54

14/07/2017 -1615 Transfer 1637738 0.54

21/07/2017 13352 Transfer 1651090 0.55

21/07/2017 -1435 Transfer 1649655 0.55

28/07/2017 19637 Transfer 1669292 0.55

28/07/2017 -10 Transfer 1669282 0.55

04/08/2017 32264 Transfer 1701546 0.56

11/08/2017 19014 Transfer 1720560 0.57

11/08/2017 -310 Transfer 1720250 0.57

18/08/2017 51033 Transfer 1771283 0.59

25/08/2017 14582 Transfer 1785865 0.59

25/08/2017 -5100 Transfer 1780765 0.59

01/09/2017 21738 Transfer 1802503 0.60

08/09/2017 14656 Transfer 1817159 0.60

08/09/2017 -13100 Transfer 1804059 0.60

15/09/2017 15459 Transfer 1819518 0.60

15/09/2017 -39400 Transfer 1780118 0.59

22/09/2017 11125 Transfer 1791243 0.59

29/09/2017 7361 Transfer 1798604 0.60

29/09/2017 -1963 Transfer 1796641 0.59

06/10/2017 27126 Transfer 1823767 0.60

06/10/2017 -2620 Transfer 1821147 0.60

13/10/2017 20123 Transfer 1841270 0.61

20/10/2017 12217 Transfer 1853487 0.61

27/10/2017 18332 Transfer 1871819 0.62

31/10/2017 1496 Transfer 1873315 0.62

03/11/2017 2068 Transfer 1875383 0.62

10/11/2017 1615 Transfer 1876998 0.62

10/11/2017 -581 Transfer 1876417 0.62

17/11/2017 6391 Transfer 1882808 0.62

17/11/2017 -4450 Transfer 1878358 0.62

24/11/2017 17416 Transfer 1895774 0.63

24/11/2017 -164 Transfer 1895610 0.63

01/12/2017 8483 Transfer 1904093 0.63

01/12/2017 -27835 Transfer 1876258 0.62

08/12/2017 59704 Transfer 1935962 0.64

08/12/2017 -1100 Transfer 1934862 0.64

15/12/2017 19439 Transfer 1954301 0.65

15/12/2017 -3450 Transfer 1950851 0.65

22/12/2017 12894 Transfer 1963745 0.65

22/12/2017 -5128 Transfer 1958617 0.65

29/12/2017 17191 Transfer 1975808 0.65

29/12/2017 -62 Transfer 1975746 0.65

05/01/2018 17090 Transfer 1992836 0.66

12/01/2018 18383 Transfer 2011219 0.67

12/01/2018 -20 Transfer 2011199 0.67

19/01/2018 2848 Transfer 2014047 0.67

19/01/2018 -3732 Transfer 2010315 0.67

26/01/2018 1316 Transfer 2011631 0.67

26/01/2018 -25867 Transfer 1985764 0.66

02/02/2018 -46300 Transfer 1939464 0.64


32

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

09/02/2018 8097 Transfer 1947561 0.64

09/02/2018 -14736 Transfer 1932825 0.64

16/02/2018 15927 Transfer 1948752 0.65

16/02/2018 -110 Transfer 1948642 0.65

23/02/2018 5242 Transfer 1953884 0.65

23/02/2018 -2337 Transfer 1951547 0.65

02/03/2018 17906 Transfer 1969453 0.65

02/03/2018 -763 Transfer 1968690 0.65

09/03/2018 58680 Transfer 2027370 0.67

16/03/2018 34814 Transfer 2062184 0.68

23/03/2018 34464 Transfer 2096648 0.69

30/03/2018 50761 Transfer 2147409 0.71

31/03/2018 2147409 0.71

7 ICICI Prudential MIP 25 2128902 0.70 31/03/2017 2128902 0.70

07/04/2017 426 Transfer 2129328 0.70

07/04/2017 -92592 Transfer 2036736 0.67

14/04/2017 245 Transfer 2036981 0.67

14/04/2017 -8872 Transfer 2028109 0.67

21/04/2017 234 Transfer 2028343 0.67

21/04/2017 -24973 Transfer 2003370 0.66

28/04/2017 -5513 Transfer 1997857 0.66

05/05/2017 14045 Transfer 2011902 0.67

05/05/2017 -28309 Transfer 1983593 0.66

12/05/2017 108 Transfer 1983701 0.66

12/05/2017 -23608 Transfer 1960093 0.65

19/05/2017 3162 Transfer 1963255 0.65

19/05/2017 -154516 Transfer 1808739 0.60

26/05/2017 306 Transfer 1809045 0.60

26/05/2017 -23721 Transfer 1785324 0.59

02/06/2017 139 Transfer 1785463 0.59

02/06/2017 -35120 Transfer 1750343 0.58

09/06/2017 5400 Transfer 1755743 0.58

09/06/2017 -22407 Transfer 1733336 0.57

16/06/2017 292 Transfer 1733628 0.57

16/06/2017 -1820 Transfer 1731808 0.57

23/06/2017 442 Transfer 1732250 0.57

23/06/2017 -8820 Transfer 1723430 0.57

30/06/2017 231 Transfer 1723661 0.57

30/06/2017 -48 Transfer 1723613 0.57

07/07/2017 32150 Transfer 1755763 0.58

07/07/2017 -2165 Transfer 1753598 0.58

14/07/2017 -23829 Transfer 1729769 0.57

21/07/2017 788 Transfer 1730557 0.57

21/07/2017 -354 Transfer 1730203 0.57

28/07/2017 71431 Transfer 1801634 0.60

28/07/2017 -73723 Transfer 1727911 0.57

04/08/2017 90337 Transfer 1818248 0.60

04/08/2017 -84303 Transfer 1733945 0.57

11/08/2017 49734 Transfer 1783679 0.59

11/08/2017 -38 Transfer 1783641 0.59

18/08/2017 55608 Transfer 1839249 0.61

25/08/2017 29906 Transfer 1869155 0.62

01/09/2017 403 Transfer 1869558 0.62

01/09/2017 -90886 Transfer 1778672 0.59

08/09/2017 71 Transfer 1778743 0.59

08/09/2017 -18 Transfer 1778725 0.59

15/09/2017 258 Transfer 1778983 0.59

15/09/2017 -195402 Transfer 1583581 0.52

22/09/2017 114 Transfer 1583695 0.52

22/09/2017 -9 Transfer 1583686 0.52

29/09/2017 5402 Transfer 1589088 0.53

29/09/2017 -35 Transfer 1589053 0.53

06/10/2017 -769 Transfer 1588284 0.53

13/10/2017 121356 Transfer 1709640 0.57

33

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

13/10/2017 -18 Transfer 1709622 0.57

20/10/2017 68635 Transfer 1778257 0.59

20/10/2017 -295 Transfer 1777962 0.59

27/10/2017 43753 Transfer 1821715 0.60

27/10/2017 -1547 Transfer 1820168 0.60

31/10/2017 33 Transfer 1820201 0.60

31/10/2017 -123224 Transfer 1696977 0.56

03/11/2017 97728 Transfer 1794705 0.59

03/11/2017 -100 Transfer 1794605 0.59

10/11/2017 88406 Transfer 1883011 0.62

10/11/2017 -7840 Transfer 1875171 0.62

17/11/2017 112031 Transfer 1987202 0.66

24/11/2017 380 Transfer 1987582 0.66

24/11/2017 -62277 Transfer 1925305 0.64

01/12/2017 565 Transfer 1925870 0.64

08/12/2017 40327 Transfer 1966197 0.65

08/12/2017 -45243 Transfer 1920954 0.64

15/12/2017 153 Transfer 1921107 0.64

15/12/2017 -170295 Transfer 1750812 0.58

22/12/2017 102 Transfer 1750914 0.58

22/12/2017 -199082 Transfer 1551832 0.51

29/12/2017 16 Transfer 1551848 0.51

29/12/2017 -73736 Transfer 1478112 0.49

05/01/2018 43275 Transfer 1521387 0.50

05/01/2018 -38803 Transfer 1482584 0.49

12/01/2018 4975 Transfer 1487559 0.49

12/01/2018 -12726 Transfer 1474833 0.49

19/01/2018 19004 Transfer 1493837 0.49

19/01/2018 -15260 Transfer 1478577 0.49

26/01/2018 17419 Transfer 1495996 0.50

26/01/2018 -36561 Transfer 1459435 0.48

02/02/2018 25195 Transfer 1484630 0.49

02/02/2018 -27146 Transfer 1457484 0.48

09/02/2018 23429 Transfer 1480913 0.49

09/02/2018 -35 Transfer 1480878 0.49

16/02/2018 678 Transfer 1481556 0.49

16/02/2018 -148 Transfer 1481408 0.49

23/02/2018 41415 Transfer 1522823 0.50

23/02/2018 -731 Transfer 1522092 0.50

02/03/2018 83979 Transfer 1606071 0.53

02/03/2018 -9711 Transfer 1596360 0.53

09/03/2018 32241 Transfer 1628601 0.54

09/03/2018 -846 Transfer 1627755 0.54

16/03/2018 97143 Transfer 1724898 0.57

16/03/2018 -20909 Transfer 1703989 0.56

23/03/2018 320 Transfer 1704309 0.56

23/03/2018 -2130 Transfer 1702179 0.56

30/03/2018 291 Transfer 1702470 0.56

31/03/2018 1702470 0.56

8 UTI Long Term Advantage Fund

Series IV

2049666 0.68 31/03/2017 2049666 0.68

07/04/2017 37947 Transfer 2087613 0.69

07/04/2017 -36254 Transfer 2051359 0.68

14/04/2017 8732 Transfer 2060091 0.68

21/04/2017 13898 Transfer 2073989 0.69

21/04/2017 -23550 Transfer 2050439 0.68

28/04/2017 2494 Transfer 2052933 0.68

05/05/2017 47102 Transfer 2100035 0.70

05/05/2017 -1500 Transfer 2098535 0.69

12/05/2017 1052 Transfer 2099587 0.70

12/05/2017 -9500 Transfer 2090087 0.69

19/05/2017 2367 Transfer 2092454 0.69

19/05/2017 -10819 Transfer 2081635 0.69

26/05/2017 6141 Transfer 2087776 0.69


34

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

26/05/2017 -7165 Transfer 2080611 0.69

02/06/2017 1989 Transfer 2082600 0.69

02/06/2017 -186 Transfer 2082414 0.69

09/06/2017 32344 Transfer 2114758 0.70

09/06/2017 -6323 Transfer 2108435 0.70

16/06/2017 10805 Transfer 2119240 0.70

16/06/2017 -16101 Transfer 2103139 0.70

23/06/2017 3081 Transfer 2106220 0.70

23/06/2017 -10294 Transfer 2095926 0.69

30/06/2017 2756 Transfer 2098682 0.69

30/06/2017 -31740 Transfer 2066942 0.68

07/07/2017 2634 Transfer 2069576 0.69

07/07/2017 -9083 Transfer 2060493 0.68

14/07/2017 11002 Transfer 2071495 0.69

14/07/2017 -14391 Transfer 2057104 0.68

21/07/2017 2575 Transfer 2059679 0.68

21/07/2017 -5949 Transfer 2053730 0.68

28/07/2017 6797 Transfer 2060527 0.68

28/07/2017 -3606 Transfer 2056921 0.68

04/08/2017 5469 Transfer 2062390 0.68

11/08/2017 4866 Transfer 2067256 0.68

18/08/2017 7798 Transfer 2075054 0.69

18/08/2017 -2274 Transfer 2072780 0.69

25/08/2017 5622 Transfer 2078402 0.69

25/08/2017 -11262 Transfer 2067140 0.68

01/09/2017 4938 Transfer 2072078 0.69

01/09/2017 -30495 Transfer 2041583 0.68

08/09/2017 15064 Transfer 2056647 0.68

08/09/2017 -12632 Transfer 2044015 0.68

15/09/2017 17665 Transfer 2061680 0.68

15/09/2017 -10013 Transfer 2051667 0.68

22/09/2017 7993 Transfer 2059660 0.68

22/09/2017 -6230 Transfer 2053430 0.68

29/09/2017 9602 Transfer 2063032 0.68

29/09/2017 -9015 Transfer 2054017 0.68

06/10/2017 17524 Transfer 2071541 0.69

13/10/2017 13447 Transfer 2084988 0.69

13/10/2017 -8566 Transfer 2076422 0.69

20/10/2017 4602 Transfer 2081024 0.69

20/10/2017 -10000 Transfer 2071024 0.69

27/10/2017 4437 Transfer 2075461 0.69

31/10/2017 39 Transfer 2075500 0.69

31/10/2017 -7162 Transfer 2068338 0.68

03/11/2017 7136 Transfer 2075474 0.69

03/11/2017 -8090 Transfer 2067384 0.68

10/11/2017 564 Transfer 2067948 0.68

10/11/2017 -4500 Transfer 2063448 0.68

17/11/2017 229 Transfer 2063677 0.68

17/11/2017 -21177 Transfer 2042500 0.68

24/11/2017 4494 Transfer 2046994 0.68

24/11/2017 -12500 Transfer 2034494 0.67

01/12/2017 3391 Transfer 2037885 0.67

01/12/2017 -12000 Transfer 2025885 0.67

08/12/2017 14259 Transfer 2040144 0.68

08/12/2017 -36717 Transfer 2003427 0.66

15/12/2017 5580 Transfer 2009007 0.67

15/12/2017 -37377 Transfer 1971630 0.65

22/12/2017 3690 Transfer 1975320 0.65

22/12/2017 -25369 Transfer 1949951 0.65

29/12/2017 3857 Transfer 1953808 0.65

29/12/2017 -31182 Transfer 1922626 0.64

05/01/2018 9387 Transfer 1932013 0.64

05/01/2018 -12398 Transfer 1919615 0.64

12/01/2018 27952 Transfer 1947567 0.64

35

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

12/01/2018 -1197 Transfer 1946370 0.64

19/01/2018 7479 Transfer 1953849 0.65

19/01/2018 -2700 Transfer 1951149 0.65

26/01/2018 53667 Transfer 2004816 0.66

26/01/2018 -91 Transfer 2004725 0.66

02/02/2018 31434 Transfer 2036159 0.67

02/02/2018 -12200 Transfer 2023959 0.67

09/02/2018 7007 Transfer 2030966 0.67

09/02/2018 -112 Transfer 2030854 0.67

16/02/2018 3228 Transfer 2034082 0.67

23/02/2018 12960 Transfer 2047042 0.68

23/02/2018 -5391 Transfer 2041651 0.68

02/03/2018 4548 Transfer 2046199 0.68

02/03/2018 -11055 Transfer 2035144 0.67

09/03/2018 7627 Transfer 2042771 0.68

09/03/2018 -8321 Transfer 2034450 0.67

16/03/2018 26667 Transfer 2061117 0.68

16/03/2018 -4968 Transfer 2056149 0.68

23/03/2018 10231 Transfer 2066380 0.68

30/03/2018 20839 Transfer 2087219 0.69

30/03/2018 -4361 Transfer 2082858 0.69

31/03/2018 2082858 0.69

9 Government of Singapore 1900381 0.63 31/03/2017 1900381 0.63

07/04/2017 -35853 Transfer 1864528 0.62

14/04/2017 -124346 Transfer 1740182 0.58

21/04/2017 -1113 Transfer 1739069 0.58

28/04/2017 -491 Transfer 1738578 0.58

05/05/2017 -26321 Transfer 1712257 0.57

12/05/2017 660 Transfer 1712917 0.57

19/05/2017 -4078 Transfer 1708839 0.57

26/05/2017 -1306 Transfer 1707533 0.57

02/06/2017 40442 Transfer 1747975 0.58

02/06/2017 -2595 Transfer 1745380 0.58

09/06/2017 5042 Transfer 1750422 0.58

09/06/2017 -5302 Transfer 1745120 0.58

16/06/2017 4525 Transfer 1749645 0.58

23/06/2017 -1172 Transfer 1748473 0.58

30/06/2017 -8333 Transfer 1740140 0.58

07/07/2017 12957 Transfer 1753097 0.58

14/07/2017 4659 Transfer 1757756 0.58

21/07/2017 -25651 Transfer 1732105 0.57

04/08/2017 65321 Transfer 1797426 0.60

11/08/2017 28229 Transfer 1825655 0.60

11/08/2017 -1552 Transfer 1824103 0.60

18/08/2017 -4076 Transfer 1820027 0.60

25/08/2017 14252 Transfer 1834279 0.61

01/09/2017 -35721 Transfer 1798558 0.60

08/09/2017 26347 Transfer 1824905 0.60

08/09/2017 -57005 Transfer 1767900 0.59

15/09/2017 114 Transfer 1768014 0.59

06/10/2017 7801 Transfer 1775815 0.59

13/10/2017 23185 Transfer 1799000 0.60

20/10/2017 34601 Transfer 1833601 0.61

20/10/2017 -1406 Transfer 1832195 0.61

27/10/2017 -2254 Transfer 1829941 0.61

03/11/2017 150966 Transfer 1980907 0.66

10/11/2017 80244 Transfer 2061151 0.68

17/11/2017 -831 Transfer 2060320 0.68

24/11/2017 21950 Transfer 2082270 0.69

01/12/2017 -46646 Transfer 2035624 0.67

08/12/2017 -27875 Transfer 2007749 0.66

15/12/2017 -2501 Transfer 2005248 0.66

05/01/2018 25173 Transfer 2030421 0.67

12/01/2018 43 Transfer 2030464 0.67


36

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

19/01/2018 30560 Transfer 2061024 0.68

26/01/2018 19725 Transfer 2080749 0.69

02/02/2018 8514 Transfer 2089263 0.69

09/02/2018 -49157 Transfer 2040106 0.68

16/02/2018 -17 Transfer 2040089 0.68

23/02/2018 -6135 Transfer 2033954 0.67

02/03/2018 -37833 Transfer 1996121 0.66

09/03/2018 -2427 Transfer 1993694 0.66

16/03/2018 15529 Transfer 2009223 0.67

30/03/2018 12050 Transfer 2021273 0.67

31/03/2018 2021273 0.67

10 Kuwait Investment Authority

Fund 141

1867518 0.62 31/03/2017 1867518 0.62

07/04/2017 -13000 Transfer 1854518 0.61

14/04/2017 25800 Transfer 1880318 0.62

05/05/2017 -39369 Transfer 1840949 0.61

12/05/2017 9000 Transfer 1849949 0.61

26/05/2017 48625 Transfer 1898574 0.63

02/06/2017 24775 Transfer 1923349 0.64

02/06/2017 -67867 Transfer 1855482 0.61

09/06/2017 -10868 Transfer 1844614 0.61

16/06/2017 -13273 Transfer 1831341 0.61

23/06/2017 -46417 Transfer 1784924 0.59

30/06/2017 -30575 Transfer 1754349 0.58

07/07/2017 34904 Transfer 1789253 0.59

14/07/2017 5813 Transfer 1795066 0.59

21/07/2017 -93197 Transfer 1701869 0.56

28/07/2017 -40053 Transfer 1661816 0.55

18/08/2017 -698 Transfer 1661118 0.55

01/09/2017 16500 Transfer 1677618 0.56

08/09/2017 -1106 Transfer 1676512 0.55

15/09/2017 -9705 Transfer 1666807 0.55

13/10/2017 10152 Transfer 1676959 0.56

03/11/2017 21283 Transfer 1698242 0.56

17/11/2017 24647 Transfer 1722889 0.57

24/11/2017 21488 Transfer 1744377 0.58

01/12/2017 19948 Transfer 1764325 0.58

08/12/2017 -1243 Transfer 1763082 0.58

22/12/2017 -13500 Transfer 1749582 0.58

29/12/2017 -888 Transfer 1748694 0.58

19/01/2018 -21090 Transfer 1727604 0.57

09/02/2018 10333 Transfer 1737937 0.58

16/02/2018 4822 Transfer 1742759 0.58

23/02/2018 14800 Transfer 1757559 0.58

09/03/2018 11766 Transfer 1769325 0.59

31/03/2018 1769325 0.59

11 Axis Mutual Fund Trustee

Limited A/c Axis Mutual F

1471462 0.49 31/03/2017 1471462 0.49

07/04/2017 -20000 Transfer 1451462 0.48

14/04/2017 30000 Transfer 1481462 0.49

21/04/2017 -35000 Transfer 1446462 0.48

28/04/2017 5000 Transfer 1451462 0.48

28/04/2017 -20000 Transfer 1431462 0.47

05/05/2017 -20000 Transfer 1411462 0.47

12/05/2017 -1000 Transfer 1410462 0.47

26/05/2017 -2745 Transfer 1407717 0.47

02/06/2017 17000 Transfer 1424717 0.47

02/06/2017 -2800 Transfer 1421917 0.47

16/06/2017 74500 Transfer 1496417 0.50

16/06/2017 -15850 Transfer 1480567 0.49

23/06/2017 27500 Transfer 1508067 0.50

30/06/2017 25250 Transfer 1533317 0.51

07/07/2017 6797 Transfer 1540114 0.51

14/07/2017 7500 Transfer 1547614 0.51

37

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

14/07/2017 -379 Transfer 1547235 0.51

21/07/2017 16300 Transfer 1563535 0.52

21/07/2017 -922 Transfer 1562613 0.52

28/07/2017 50500 Transfer 1613113 0.53

04/08/2017 62750 Transfer 1675863 0.55

04/08/2017 -36 Transfer 1675827 0.55

11/08/2017 12270 Transfer 1688097 0.56

11/08/2017 -2618 Transfer 1685479 0.56

18/08/2017 29000 Transfer 1714479 0.57

25/08/2017 15500 Transfer 1729979 0.57

08/09/2017 3450 Transfer 1733429 0.57

08/09/2017 -6000 Transfer 1727429 0.57

15/09/2017 100000 Transfer 1827429 0.60

15/09/2017 -1 Transfer 1827428 0.60

22/09/2017 745 Transfer 1828173 0.61

06/10/2017 12500 Transfer 1840673 0.61

06/10/2017 -26007 Transfer 1814666 0.60

13/10/2017 5000 Transfer 1819666 0.60

13/10/2017 -17 Transfer 1819649 0.60

20/10/2017 10000 Transfer 1829649 0.61

27/10/2017 12600 Transfer 1842249 0.61

31/10/2017 -4346 Transfer 1837903 0.61

03/11/2017 6000 Transfer 1843903 0.61

10/11/2017 -60050 Transfer 1783853 0.59

24/11/2017 32750 Transfer 1816603 0.60

01/12/2017 21250 Transfer 1837853 0.61

01/12/2017 -29400 Transfer 1808453 0.60

08/12/2017 29400 Transfer 1837853 0.61

08/12/2017 -125650 Transfer 1712203 0.57

15/12/2017 22000 Transfer 1734203 0.57

15/12/2017 -34125 Transfer 1700078 0.56

22/12/2017 49000 Transfer 1749078 0.58

22/12/2017 -510 Transfer 1748568 0.58

29/12/2017 -96000 Transfer 1652568 0.55

05/01/2018 28275 Transfer 1680843 0.56

05/01/2018 -16018 Transfer 1664825 0.55

12/01/2018 -2500 Transfer 1662325 0.55

19/01/2018 -600 Transfer 1661725 0.55

26/01/2018 9825 Transfer 1671550 0.55

26/01/2018 -33538 Transfer 1638012 0.54

02/02/2018 125850 Transfer 1763862 0.58

02/02/2018 -21125 Transfer 1742737 0.58

09/02/2018 25000 Transfer 1767737 0.59

09/02/2018 -4950 Transfer 1762787 0.58

16/02/2018 -38500 Transfer 1724287 0.57

23/02/2018 -4500 Transfer 1719787 0.57

09/03/2018 4950 Transfer 1724737 0.57

16/03/2018 11500 Transfer 1736237 0.57

23/03/2018 4000 Transfer 1740237 0.58

23/03/2018 -41325 Transfer 1698912 0.56

30/03/2018 28600 Transfer 1727512 0.57

30/03/2018 -5233 Transfer 1722279 0.57

31/03/2018 1722279 0.57

12 Copthall Mauritius Investment

Limited

1681865 0.56 31/03/2017 1681865 0.56

07/04/2017 19708 Transfer 1701573 0.56

14/04/2017 8086 Transfer 1709659 0.57

05/05/2017 -449080 Transfer 1260579 0.42

12/05/2017 -8767 Transfer 1251812 0.41

26/05/2017 -854 Transfer 1250958 0.41

02/06/2017 -257 Transfer 1250701 0.41

09/06/2017 -4384 Transfer 1246317 0.41

16/06/2017 -4529 Transfer 1241788 0.41

23/06/2017 -104778 Transfer 1137010 0.38


38

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

30/06/2017 579 Transfer 1137589 0.38

07/07/2017 -11702 Transfer 1125887 0.37

14/07/2017 -1131 Transfer 1124756 0.37

21/07/2017 -22847 Transfer 1101909 0.36

28/07/2017 -546 Transfer 1101363 0.36

04/08/2017 -17673 Transfer 1083690 0.36

11/08/2017 693 Transfer 1084383 0.36

18/08/2017 -2742 Transfer 1081641 0.36

25/08/2017 4020 Transfer 1085661 0.36

01/09/2017 -31161 Transfer 1054500 0.35

08/09/2017 -7851 Transfer 1046649 0.35

15/09/2017 -750 Transfer 1045899 0.35

22/09/2017 40480 Transfer 1086379 0.36

29/09/2017 -24669 Transfer 1061710 0.35

06/10/2017 4739 Transfer 1066449 0.35

13/10/2017 -168 Transfer 1066281 0.35

20/10/2017 21370 Transfer 1087651 0.36

27/10/2017 -18571 Transfer 1069080 0.35

31/10/2017 -356 Transfer 1068724 0.35

03/11/2017 -1725 Transfer 1066999 0.35

10/11/2017 732 Transfer 1067731 0.35

17/11/2017 -3156 Transfer 1064575 0.35

24/11/2017 1753 Transfer 1066328 0.35

01/12/2017 -21402 Transfer 1044926 0.35

08/12/2017 -11708 Transfer 1033218 0.34

15/12/2017 -1049 Transfer 1032169 0.34

22/12/2017 22447 Transfer 1054616 0.35

29/12/2017 1165 Transfer 1055781 0.35

05/01/2018 -6462 Transfer 1049319 0.35

12/01/2018 -12393 Transfer 1036926 0.34

19/01/2018 5076 Transfer 1042002 0.34

26/01/2018 53820 Transfer 1095822 0.36

02/02/2018 -12513 Transfer 1083309 0.36

09/02/2018 -55350 Transfer 1027959 0.34

23/02/2018 -82575 Transfer 945384 0.31

02/03/2018 7065 Transfer 952449 0.32

09/03/2018 -14893 Transfer 937556 0.31

16/03/2018 2777 Transfer 940333 0.31

23/03/2018 -107341 Transfer 832992 0.28

30/03/2018 -257 Transfer 832735 0.28

31/03/2018 832735 0.28

13 Vanguard Emerging Markets

Stock Index Fund, Aserie

1634745 0.54 31/03/2017 1634745 0.54

07/04/2017 21691 Transfer 1656436 0.55

21/04/2017 54912 Transfer 1711348 0.57

28/04/2017 32707 Transfer 1744055 0.58

05/05/2017 15920 Transfer 1759975 0.58

12/05/2017 18497 Transfer 1778472 0.59

19/05/2017 35009 Transfer 1813481 0.60

02/06/2017 10995 Transfer 1824476 0.60

09/06/2017 7792 Transfer 1832268 0.61

30/06/2017 123986 Transfer 1956254 0.65

07/07/2017 7105 Transfer 1963359 0.65

14/07/2017 25247 Transfer 1988606 0.66

21/07/2017 16510 Transfer 2005116 0.66

28/07/2017 13805 Transfer 2018921 0.67

04/08/2017 4466 Transfer 2023387 0.67

11/08/2017 5887 Transfer 2029274 0.67

25/08/2017 28739 Transfer 2058013 0.68

01/09/2017 11541 Transfer 2069554 0.69

08/09/2017 10353 Transfer 2079907 0.69

15/09/2017 9338 Transfer 2089245 0.69

06/10/2017 6090 Transfer 2095335 0.69

13/10/2017 6293 Transfer 2101628 0.70

39

Sl.

No.


during the year

No of Shares

held as on

31/03/2017

% of total

Shares of the

Company

Date Increase/

Decrease in

share holding

Reason for

change

No of Shares

held as on

31/03/2018

% of total

shares of the

Company

20/10/2017 4669 Transfer 2106297 0.70

27/10/2017 4263 Transfer 2110560 0.70

22/12/2017 -34729 Transfer 2075831 0.69

26/01/2018 8930 Transfer 2084761 0.69

02/02/2018 7980 Transfer 2092741 0.69

23/03/2018 2032355 Transfer 4125096 1.37

23/03/2018 -2092741 Transfer 2032355 0.67

30/03/2018 -9350 Transfer 2023005 0.67

31/03/2018 2023005 0.67

v) Shareholding of Directors and Key Managerial Personnel:

Sl.

No.

For each of the Directors and KMP Shareholding at the

beginning of the year

Cumulative shareholding

during the year

No. of shares % of total shares

of the Company

No. of shares % of total shares

of the Company

1 At the beginning of the year

1. Mr. S. Ravi Aiyar, Executive Director (Legal) & Company Secretary 1(one) - 1(one) -

2. Mr. Ajay Seth, Chief Financial Officer - - - -

3. Directors - - - -

Date wise increase/decrease in shareholding during the year specifying

the reason for increase/ decrease (e.g. allotment/ transfer/ bonus/sweat

equity etc):

- - - -

2 At the end of the year

1. Mr. Ajay Seth, Chief Financial Officer - - - -

2. Mr. Sanjeev Grover, Chief General Manager & Company Secretary 10(ten) - 10(ten) -

3. Directors - - - -

V. Indebtedness

Indebtedness of the Company including interest outstanding/ accrued but not due for payment

Secured Loans

excluding deposits

Unsecured Loans

(In ` )

Deposit Total

Indebtedness

(In ` )

Indebtedness at the beginning of the financial year (31st March, 2017)(i) Principal Amount - 4,835,513,922 - 4,835,513,922

(ii) Interest due but not paid - - - -

(iii) Interest accrued but not due - 862,231 - 862,231

Total (i+ii+iii) - 4,836,376,153 - 4,836,376,153Change in Indebtedness during the financial year• Addition - 1,108,249,184 - 1,108,249,184

• Reduction - (4,836,376,152) - (4,836,376,152)

Net Change - (3,728,126,968) - (3,728,126,968)Indebtedness at the end of the financial year (31st March, 2018)(i) Principal Amount - 1,108,051,141 - 1,108,051,141

(ii) Interest due but not paid - - - -

(iii) Interest accrued but not due - 198,044 198,044

Total (i+ii+iii) - 1,108,249,185 - 1,108,249,185


40

VI. Remuneration of Directors and Key Managerial Personnel

A. Remuneration to Managing Director and Whole-Time Directors

Sl.

No.

Particulars of Remuneration Name of MD/WTD Total Amount

(In `)

Mr. Kenichi

Ayukawa

(In `)

Mr. Kazunari

Yamaguchi

(In `)

Mr. Shigetoshi Torii

(In `)

1. Gross salary

(a) Salary as per provisions contained in section 17(1) of

the Income-tax Act, 1961

20,904,000 2,584,418 9,073,000 32,561,418

(b) Value of perquisites under section 17(2) of the

Income-tax Act, 1961

8,064,000 908,219 3,794,400 12,766,619

(c) Profits in lieu of salary under section 17(3) of the


- - - -

(d) Fee for attending board/ committee meetings - - - -

2. Stock Option

3. Sweat Equity

4. Commission

- as % of profit

- others, specify…

5. Other – Performance Linked Bonus 16,320,000 1,916,521 6,996,000 25,232,521

Total (A) 45,288,000 5,409,158 19,863,400 70,560,558Ceiling as per the Act (` in million) 9005

B. Remuneration to other Directors

Sl.

No.

Particulars of Remuneration Name of Directors Total Amount

(In `)

1. Independent Director Mr. Davinder

Singh Brar

(In `)

Ms. Pallavi

Shroff

(In `)

Mr. Rajinder

Pal Singh

(In `)

Ms. Renu

Sud Karnad

(In `)

• Fee for attending board/ committee

meetings

1,400,000 900,000 1,100,000 550,000 3,950,000

• Commission 5,200,000 3,000,000 3,600,000 2,200,000 14,000,000

• Others, please specify - - - - -

Total (1) 6,600,000 3,900,000 4,700,000 2,750,000 17,950,0002. Other Non-ExecutiveDirectors Mr. R.C.

Bhargava

(In `)

Mr. Kinji Saito

(In `)

Mr. Toshihiro

Suzuki

(In `)

Mr. Osamu

Suzuki

(In `)

Mr. Kazuhiko

Ayabe

(In `)

Mr. Toshiaki

Hasuike

(In `)

Total Amount

(In `)

• Fee for attending board/committee

meetings

850,000 400,000 550,000 400,000 400,000 500,000 3,100,000

• Commission 12,000,000 - - - - - 12,000,000

• Others, please specify - - - - - - -

Total (2) 12,850,000 400,000 550,000 400,000 400,000 500,000 15,100,000Total (B)=(1+2) Total Managerial Remuneration

19,450,000 4,300,000 5,250,000 3,150,000 400,000 500,000 33,050,000

Overall ceiling as per the Act (` In million) 901

41

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

Sl.

No.

Particulars of Remuneration Key Managerial Personnel

Mr. Ajay Seth

(In `)

Mr. Sanjeev Grover

(In `)

Mr. S. Ravi Aiyar

(In `)

Total

(In `)

1. Gross salary

(a) Salary as per provisions contained in section 17(1) of

the Income-tax Act, 1961

25,816,724 154,965 33,657,455 59,629,144

(b) Value of perquisites under section 17(2) of the


423,251 1,385 324,229 748,865

(c) Profits in lieu of salary under section 17(3) of the


- - - -

2. Stock Option - - - -

3. Sweat Equity - - - -

4. Commission - - - -

- as % of profit - - - -

- others, specify… - - - -

5. Others, please specify - - - -

Total 26,239,975 156,350 33,981,684 60,378,009

VII. Penalties/ Punishment/ Componding of Offences:

Type Section of

the Companies Act

Brief description Details of penalty/

punishment/

compounding fees

imposed

Authority

[RD/ NCLT/ COURT]

Appeal made, if any

(give details)

A. Company Penalty

NIL Punishment

Compounding

B. Directors Penalty

NIL Punishment

Compounding

C. Other Officers in Default Penalty

NIL Punishment

Compounding



New Delhi

27th April, 2018


42

Annexure - BNomination and Remuneration Policy

1. Scope

1.1. This Nomination and Remuneration Policy (the “Policy”) has

been framed in compliance with Section 178 of the Companies

Act, 2013 (Act) and Clause 49 of the Listing Agreement

executed with the Stock Exchanges.

1.2. This Policy aims to ensure that the persons appointed

as Directors and Key Managerial Personnel (KMPs) as

defined under the Act and Senior Management (designated

Executive Officer and above) possess requisite qualifications,

experience, expertise and attributes commensurate with

their positions and level of management responsibilities and

that the composition of remuneration to such persons is fair

and reasonable and sufficient to attract, retain and motivate

these persons to run the Company successfully.

1.3. This Policy is applicable to Directors, KMPs, Senior

Management and other employees of the Company.

2. Objective

1.1. The objective of this Policy is to provide a framework for

appointment, removal and remuneration of Directors, KMPs

and Senior Management.

1.2. The Policy aims to provide:

(i) Criteria of appointment and removal of Directors, KMPs

and Senior Management;

(ii) Criteria for determining qualifications, positive attributes

and independence of a Director;

(iii) Remuneration of Directors, KMPs and Senior

Management;

(iv) Principles for retaining, motivating and promoting talent

and ensuring long term retention of talent and creating

competitive advantage.

3. Board Diversity

While considering the composition of the Board, the NRC

will take into account the diversity of the members of the

Board based on a number of factors, inter-alia, gender,

age, qualifications, nationality, professional experience,

recognition, skills and ability to add value to the business.

Subject to the provisions of the Act and the Listing Agreement

including rules and regulations made thereunder, the Board

shall have atleast one woman director, persons who have

strong technical/managerial/administrative backgrounds

relevant to the business of the Company and those who

have excelled in one or more areas of finance/accounting/

law/public policy with top level administrative/managerial

experience.

4. Qualifications and Attributes for Directors, KMPs and Senior Management

1.1. The prospective Director:

(i) should be of the highest integrity and level of ethical

standards;

(ii) should possess the requisite qualifications, skills,

knowledge, experience and expertise relevant or useful

to the business of the Company.

(iii) should, while acting as a Director be capable of

balancing the interests of the Company, its employees,

the shareholders, the community and of the need to

ensure the protection of the environment; and

(iv) should inter-alia,

(a) uphold the highest ethical standards of integrity and

probity;

(b) act objectively and constructively while exercising

his / her duties;

(c) exercise his / her responsibilities in a bona fide

manner in the interest of the Company;

(d) devote sufficient time and attention to his / her

professional obligations for informed and balanced

decision making;

(e) not allow any extraneous considerations that will

vitiate his / her exercise of objective independent

judgment in the paramount interest of the Company

as a whole, while concurring in or dissenting from

the collective judgment of the Board in its decision

making;

(f ) not abuse his / her position to the detriment of the

Company or its shareholders or other stakeholders

or attempt to gain direct or indirect personal

advantage or advantage for any associated person;

(g) avoid conflict of interest, and in case of any apparent

situation of conflict of interest, make appropriate

disclosures to the Board;

(h) assist the Company in implementing the best

corporate governance practices;

43

(i) strictly adhere to and monitor legal compliances at

all levels; and

( j) protect confidentiality of the confidential and

proprietary information of the Company.

(v) In addition, in the case of an Independent Director(s),

he/she must also satisfy the criteria specifically set out

under applicable laws including the Act and the Listing

Agreement.

1.2. The KMPs and the Senior Management should possess the

highest integrity and ethical standards and have the requisite

qualification and experience in any field relevant to and

necessary for the business of the Company, including but

not limited to technology, finance, law, public administration,

management, accounting, marketing, production and human

resource. They should also meet the requirements of the Act,

Rules, Listing Agreement and / or any other applicable laws.

5. Evaluation of the Board, its Chairman, Individual Directors and Committees of the Board

The evaluation of the Board, its Chairman, individual

directors and committees of the Board shall be undertaken in

compliance with the provisions of Section 134(3)(p), Section

178 and Clause 49 of the Listing Agreement.

6. Appointment and Removal of Non-Executive/Independent Directors

1.1 Appointment (i) Depending upon the requirements of the Company, the

NRC shall identify from sources the Committee considers

appropriate and reliable the persons who meet the

requisite criteria and recommend their appointment to

the Board at appropriate times.

(ii) The Board will consider the recommendations of the

NRC and accordingly, approve the appointment and

remuneration of Non-executive and / or Independent

Directors, subject to the needs of the Company and the

approval of the shareholders.

(iii) The appointment process shall be independent of

the Company management. While selecting persons

for appointment as Independent Directors, the Board

shall ensure that there is an appropriate balance of

skills, experience and knowledge in the Board so as to

enable the Board to discharge its functions and duties

effectively.

(iv) The appointment of Independent Directors shall

be formalised by way of letters of appointment in

accordance with the applicable laws and the requisite

related disclosures in relation to such appointments

made.

(v) The process for appointment of Independent Directors

prescribed under the Act, the Listing Agreement and

specifically the procedure set out under Schedule IV of

the Act (Code for Independent Directors) will be followed.

The Board shall also comply with other applicable laws.

1.2. Removal The appointment of an independent director may be

terminated at the recommendation of the NRC or by the

Board on its own in the event he/she:

a. commits a breach of any of the duties, functions and

responsibilities or obligations towards the Company or

for reasons prescribed under the Act; or

b. compromises independence vis-à-vis the Company in

any manner whatsoever which will have an impact on

the criteria of independence.

c. if he/she becomes prohibited by law or under the Articles

of Association from being an independent director of the

Company.

7. Appointment and Removal of Managing Director, Joint Managing Director, Whole-Time Directors, KMPs and Senior Management Personnel

1.1. Appointment (i) Depending upon the requirements of the Company for

the above positions, the NRC shall identify persons and

recommend their appointment to the Board including

the terms of appointment and remuneration.

(ii) The Board will consider the recommendations of

NRC and accordingly approve the appointment(s)

and remuneration. The appointment of the Managing

Director/Joint Managing Director/Whole-time Directors

shall be subject to the approval of the shareholders.

(iii) Appointments of other employees will be made in

accordance with the Company’s Human Resource (HR)

policy.

1.2. Removal (i) The appointment of the Managing Director/Joint

Managing Director/Whole-time Directors may be

terminated at the recommendation of the NRC or by the

Board on its own, if such Director commits a breach of any

of the duties, functions and responsibilities or obligations

or he/she becomes prohibited by law or under the Articles

of Association from being such director of the Company.

(ii) The appointment of KMPs/Senior Management

Personnel may be terminated at the recommendation

of the NRC or by the Board on its own, if the person

commits a breach of any duties, functions and

responsibilities or obligations or for reasons prescribed

under the Act or the Listing Agreement or for reasons

of poor performance as measured as the result of the

performance appraisal process over one or more years

or suffers from any disqualification(s) mentioned in the

Act, the Rules or under any other applicable laws, rules

and regulations, or breaches the code of conduct and /

or policies of the Company.

(iii) In respect of employees in other positions, where an

employee suffers from any disqualification(s) mentioned

in the Act, if any, under any other applicable laws, rules

and regulations, the code of conduct and / or policies


44

of the Company, the Management of the Company may

terminate the services of such employee as laid down in

the HR Policy of the Company.

8. Remuneration

1.1. The remuneration of the Non-executive / Independent

Directors will include the following:

(i) Variable remuneration in the form of commission

calculated as a percentage of the net profits of the

Company as recommended by the NRC and to the extent

permitted in the Act and approved by the Board and

/ or the shareholders of the Company. The payment of

commission is based on criteria such as attendance at

meetings of the Board/ Committees of the Board, time

devoted to the Company’s work, the responsibilities

undertaken as Chairmen of various committees/the

Board, their contribution to the conduct of the Company's

business, etc.;

(ii) Sitting fee for attending meetings of the Board and

committees constituted by the Board;

(iii) Reimbursement of expenses for participation in the

meetings of the Board and other meetings.

1.2. The remuneration of the Managing Director, Joint

Managing Director, Whole-time Directors, KMPs and Senior

Management Personnel should be commensurate with

qualifications, experience and capabilities. The remuneration

should take into account past performance and achievements

and be in line with market standards. In determining the

total remuneration, consideration should be given to the

performance of the individual and also to the performance of

the Company. In both cases, performance is measured against

goals/plans determined beforehand at the commencement of

a year and well communicated to the individual/ the individual

holding the management position, as the case may be.

1.3. The remuneration of the Managing Director/Joint Managing

Director/Whole Time Director/KMPs/Senior Management

Personnel will include the following:

(i) Salary and allowances - fixed and variable besides

other Benefits as per Rules contained in the HR Policy

applicable to Senior Management Personnel;

(ii) Retirement benefits including provident fund / gratuity /

superannuation / leave encashment;

(iii) Performance linked bonus.

1.4. No Sitting Fee shall be payable to the Managing Director/a

Whole Time Director for attending meetings of Board or the

committees constituted by the Board.

1.5. The remuneration of the employees other than Senior

Management Personnel shall be as per Company’s HR Policy.

9. Increments

1.1. Increments of Managing Director/Joint Managing Director/

Whole-time Directors will be granted by the Board based

on the recommendation of the NRC taking into account

the performance of the individual, the performance of the

business and the Company as a whole. Performance will be

measured against pre-determined and agreed goals/plans

which are made known at the commencement of the year. The

Board and the shareholders of the Company may approve

changes in remuneration from time to time.

1.2. Appraisal will be carried out and award of increments of the

KMPs/Senior Management Personnel/other employees will

be determined according to the prevalent HR Policy and

practice of the Company. The NRC will oversee compliance

with the process.

10. Review/Amendment

Based on the recommendation of the NRC, the Board may

review and amend any or all clauses of this Policy depending

upon exigencies of business.

45

Annexure Evaluation Criteria

The Act and the Listing Agreement requires the evaluation of performance of the Directors of the Company to be undertaken as under:

Sl.

No.

Provisions of the Act Evaluation of Performance of Performance to be evaluated by

A. Section 178(2) Independent Directors Nomination and Remuneration Committee

Non-independent Directors

B. Section 134(3)(p) read with Schedule IV of the Act The Board Board

Committees of the Board

Independent Directors

Non-independent Directors

C. Listing Agreement and Schedule IV of the Act Non-independent Directors Independent Directors

The Board

Chairman of the Company


46

Annexure - CAnnual Report on CSR Activities

1. Brief outline of Company’s CSR Policy including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR Policy and projects or programes.

The Company’s CSR policy aims to create a meaningful

and lasting impact in the lives of beneficiaries. To achieve

the desired impact, the Company focuses its resources on

a limited number of projects in specific areas rather than

spread them thin over several projects.

The Company’s CSR activities are primarily in the areas of

community development, road safety and skill development.

Projects are designed in consultation with beneficiaries and

stakeholders, and are implemented directly by the Company.

As in its core business of automobiles, the Company strives

to deliver superior value by effective planning, monitoring

and control in its CSR projects, cost optimisation, continuous

improvement and capability development of suppliers. In line

with the Plan-Do-Check-Act (PDCA) approach, the Company

undertakes regular impact assessment of social projects and

uses the feedback to improve design and execution. With the

quantum of funds committed to CSR increasing, the Company

is strengthening financial checks and balances and controls

in the CSR organisation.

In community development, the Company aims to improve

the quality of life in the project villages by undertaking

relevant and effective social projects including building

sewer lines, household toilets, providing potable drinking

water and upgrading government school infrastructure.

The Company has adopted 26 villages, mainly around its

facilities to ensure projects can be implemented with direct

supervision and control. The Company plans to implement

its village development plan in all the project villages within a

specified timeframe of four years.

In the area of road safety, the Company is using latest

technologies to improve safety on roads. The Company

continues to support expansion of quality driving training

infrastructure in the country, with increased focus on training

of driving instructors.

The Company is expanding its efforts to enhance

employability of underprivileged youth by improving the

quality of skill training in over 110 Industrial Training Institutes

(ITIs). The Company’s approach is to consult potential

employers to understand their requirements, and undertake

relevant initiatives such as upgrade workshops, enhance

industry exposure for trainers and students and impart soft

skills to make students industry-ready. The Company has

developed a benchmark skill development institute, Japan

India Institute for Manufacturing (JIM), as part of a joint

initiative by the Governments of Japan and India to train

Indian youth.

Web link: http://www.marutisuzuki.com/our-policies.aspx

2. The composition of the CSR Committee.

The composition of the CSR Committee of the Board is as under.

Sl.

No.

Name Designation/Category CSR Committee

1 Mr. R. C. Bhargava Chairman/ Non-executive Chairman

2 Mr. K. Ayukawa Managing Director & CEO/Executive Member

3 Mr. R. P. Singh Independent Director Member

3. Average Net Profit of the Company for last three financial years.

Average net profit of the Company for last three financial years

(2014-15, 2015-16 and 2016-17) calculated in accordance

with the provisions of the Section 198 is ` 6041.60 crore.

4. Prescribed CSR Expenditure (two percent of the amount as in item No. 3 above)

Two percent of the average net profit for last three financial

years is ` 120.83 crore.

5. Details of CSR spent during the financial year:

A. Total amount to be spent for the financial year: The

Company was required to spend ` 120.83 crore in 2017-

18 on CSR activities.

The Company had spent ` 89.45 crore in 2016-17. In

2017-18, the Company was able to scale up the CSR

spent to ` 125.08 crore i.e. over two percent of the

average net profit for last three financial years.

B. Amount unspent: Nil

47

C. Manner in which the amount spent during the financial year is detailed below:

` in Crore

Sl.

No.

CSR project / activity

identified

Sector in

which the

Project is

covered

Projects /Programmes

1. Local area/others

2. Specify the state

and district where

projects or programs

were undertaken

Amount

outlay

(budget)

project/

programs

wise

Amount spent on the

project /programs

Subheads:

1.Direct expenditure on

project,

2.Overheads

Cumulative

spend

up to the

reporting

period

Amount spent:

Direct /through

implementing

agency

Direct Overhead Total

Community Development

1 Water & Sanitation

projects: Including

Sewer Lines, water

tanks, potable drinking

water ATMs, Village

Waste Collection &

Disposal, Construction

of Household toilets

Sanitation

and Safe

Drinking

Water

1. Local

2. Gurgaon and

Rohtak districts

(Haryana),

Ahmedabad district

(Gujarat), Bangalore

(Karnataka)

20.00 24.76 0.17 24.93 Direct and

through

implementing

agency

2 Rural Development

Projects: community

halls, cremation

grounds, parks, village

streets and roads,

playgrounds, etc.

Rural

Development

Projects

1. Local

2. Gurgaon and

Rohtak districts

(Haryana)

10.00 9.31 0.08 9.39 Direct and

through

implementing

agency

3 Education projects:

Upgradation of

government school

infrastructure;

improving learning

level of students and

scholarship to students

from local community

etc.

Promoting

Education

1. Local

2. Gurgaon and

Rohtak districts

(Haryana),

Ahmedabad district

(Gujarat)

19.00 5.38 0.10 5.48 Direct and

through

implementing

agency

4 Health: Upgradation of

Primary Health Centres,

Hospital

Health Gurgaon and Rohtak

districts (Haryana)

10.00 0.16 0.01 0.17 Direct and

through

implementing

agency

Skill Development1 Upgradation of

Government Vocational

and Technical Training

Institutes: Training and

Capacity

Employment

Enhancing

Vocational

Skills

Pan India 11.25 11.71 0.53 12.24 Direct and

through

implementing

agency

2 Japan India Institute

of Manufacturing,

Upgradation of ITI

Mirzapur

Employment

Enhancing

Vocational

Skills

Mehsana district

(Gujarat), Mirzapur

district (Uttar Pradesh)

9.00 10.81 0.08 10.89 Direct and

through

implementing

agency

3 Skill enhancement

in Automobile Trade

at Industrial Training

Institutes (ITI)

Employment

Enhancing

Vocational

Skills

Pan India 9.00 9.25 0.26 9.51 Through

implementing

agency

Road Safety1 Use of technology

to bring behavioural

change among

commuters and

reduction in road

accidents

Promoting

Education

Pan India 14.00 15.83 - 15.83 Through

implementing

agency

2 Expansion of Driving

training Infrastructure

and Improvement in

licensing system and

Driving training of

underprivileged youth

Employment

Enhancing

Vocational

Skills

Pan India 10.00 6.93 0.01 6.94 Direct and

through

implementing

agency


48

` in Crore

Sl.

No.

CSR project / activity

identified

Sector in

which the

Project is

covered

Projects /Programmes

1. Local area/others

2. Specify the state

and district where

projects or programs

were undertaken

Amount

outlay

(budget)

project/

programs

wise

Amount spent on the

project /programs

Subheads:

1.Direct expenditure on

project,

2.Overheads

Cumulative

spend

up to the

reporting

period

Amount spent:

Direct /through

implementing

agency

Direct Overhead Total

3 Programme to promote

driving training,

health, and safety of

commercial drivers and

youth

Promoting

Education

Gujarat and Haryana 1.75 2.16 - 2.16 Through

implementing

agency

4 Road Safety Awareness:

Campaigns at college,

schools, and during road

safety week/month.

Road safety awareness

campaigns on TV, radio,

and print media

Promoting

Education

Pan India 10.00 9.74 - 9.74 Direct and

through

implementing

agency

5 City Specific Road

Safety: Road safety

awareness among

citizens for road

accidents reductions,

analysis of accidents to

make the city model in

terms of road safety

Promoting

Education

1. Local

2. Gurgaon district

(Haryana)

11.00 10.85 0.38 11.23 Direct and

through

implementing

agency

Total (A) 116.89 1.62 118.51OthersUnspent contribution

to Maruti Suzuki

Foundation towards

undertaking CSR

initiative as per focus

area and programme

area listed in Schedule

VII, Section 135 to

Companies Act 2013 (B)

2.94 - -

CSR Administrative OverheadsCommon Administrative

Overheads (Salary

of CSR staff and

expenditure on training

and capacity building)

(C)

3.63

Grand Total (A+B+C) 125.08 -

6. In case the Company fails to spend the 2% of the Average Net Profit (INR) of the last 3 financial years, the reasons for not spending the amount shall be stated in the Board report.

Not applicable (The Company has spent over 2% of the Average Net Profits of the last 3 financial years in 2017-18).

7. Responsibility statement, of the CSR Committee, that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the Company duly signed by Director and Chairperson of the CSR Committee.

The Company has implemented and monitored CSR projects in compliance with CSR objectives and policy of the Company.



New Delhi

27th April, 2018

49

Annexure - DInformation in accordance with Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 and forming part of the Board's Report for the year ended 31st March, 2018.

A. Energy Conservation

The Company continued its energy conservation drive with

main focus on reducing energy cost and improving efficiency

through adoption of new technology and optimisation of

processes thereby reducing operational costs. The Company

spent ` 18.74 million as capital investment towards energy

conservation equipment. Energy saving initiatives at its

plants helped the Company in reducing overall energy cost.

Some of the activities carried out during the year towards

environment, energy and water conservation are mentioned

as under:

1. Energy Cost Reduction:a. Maximum usage of low cost grid power on working and

holidays.

b. Condensate recovery system in the steam pipeline.

c. Use of diesel rotary UPS for reliable and cost-effective power.

2. Energy Conservation:a. Provision of energy efficiency drives like condenser, variable

frequency drive (VFD) in compressor plant and submersible

mixer, ultra violet (UV) system, twin lobe blowers in water

treatment plant.

b. Intelligent flow controller (IFC) for reduction in energy

consumption in compressed air plant.

c. Installation of UV system and cyclo-drive unit in water

treatment plant.

3. Reliability / Process Improvement:a. Renewal and upgradation of compressor auxiliaries, heating

ventilation and air-conditioning (HVAC), power distribution

equipment and high-speed diesel (HSD) and natural gas pipe

line.

b. Improved process monitoring by installation of generator

auxiliary equipment, online silica analyzer and replacement

of single core cable with 3 core cable.

c. Stainless steel tanks for underground storage of fuel.

4. Safety Improvement a. Covering the open electrical bus bar in generator auxiliary

compartment-3 of power plant.

b. Alarm indication to detect leakage in HSD supplying pipeline

to assembly shop.

c. Installation of fire alarm system in compressed airplant-1 and

material store to improve safety.

d. Installation of flame proof motor for driving the cooling fan.

e. Fire suppression system in all testing laboratories.

5. Water & Environment Conservationa. Installation of auxiliary compact compressor for utilisation of

vent steam in process and water conservation.

b. Increased water recycling by installation of additional clarifier

in sewage treatment plant.

c. Backwashing of ultra-filtration (UF) units with effluent

treatment plant (ETP) treated water instead of fresh water.

d. Provision of recycled water in other departments/divisions

of the Company like Technical Training Centre (TTC), R&D,

Service Training Centre (STC) & Spare Parts Division (SPD)

area roof for solar panel cleaning.

B. Research & Development (R & D)

Vision:The Company has been focusing on developing its R&D capability

to design & develop products which meet growing customer

expectations. The Company with a team of 1600 R&D engineers,

is making efforts in this direction to develop products which are

attractive, equipped with latest technologies, provide comfort,

convenience, safety and digital connectivity.

The Company unveiled the `Concept Future S’ and `E-survivor’

concept during the Auto Expo 2018. Concept Future S is aimed

at demonstrating the new futuristic design philosophy of the

Company for compact car, while E-survivor depicted the new

and exciting F.A.C.E (Four-Wheel Drive, Autonomous, Connected

& Electric) of Suzuki’s intent for future mobility. It encompasses

all future possibilities i.e. “Four-Wheel Drive, Autonomous,

Connected & Electric”. Suzuki’s Hybrid electric vehicle technology

(HEV) was also showcased during the Auto Expo.

Technology:In an effort to enhance customer experience, the Company

introduced technologies in the area of platform, powertrain and

connected technologies:

• Platform: New Dzire and Swift are built on 5th generation

HEARTECT platform which is lighter and stronger, giving best in

class fuel efficiency, safety and enhanced vehicle performance.

• Connected Technologies: Android Auto (Smartphone

connectivity to android users) extended to models sold through

Arena channel.

• Smart Hybrid technology with functions like regenerative

braking, torque assist & idle start-stop has been extended to

S-Cross for better fuel efficiency.


50

• Advanced Auto Gear Shift (AGS) Technology extended to

gasoline and diesel variant of Swift and gasoline variant of

Dzire for optimum fuel efficiency and ease of driving.

Focus on Safety and Emission Regulations: While capabilities around product development continued to

grow, the Company also ensured that safety is given high priority.

The Company is proactively making all efforts to make its models

fully compliant with the applicable regulations. The Company’s

3rd generation Swift & Dzire comply with upcoming regulations

like offset frontal offset, side impact and pedestrian protection.

At present, nine models (Vitara Brezza, Ignis, Baleno, Ertiga, Ciaz,

S-Cross, Swift, Dzire and Celerio) are already certified for frontal

offset and side impact regulations well ahead of the time-line.

Government of India has decided to leapfrog to BS-6 norms

by 2020, by passing the fifth stage and advancing the earlier

deadline of 2022. The Company is making all efforts to ensure

all the engines and model variants meet the BS-6 regulation by

2020.

The Indian customer is becoming technology savvy and highly

demanding. Understanding the needs of Indian customers and

the usage conditions require highest level of commitment from

the entire organisation. The Company along with Suzuki Motor

Corporation is making continuous efforts to capture these

requirements accurately and develop products that meet Indian

requirements. Integrated R&D facility in Rohtak is also playing a

big role in understanding Indian customer needs, new product

development and product evaluation. Facilities in the area of

safety, noise vibration & harshness (NVH), endurance tracks and

durability were made operational till last year at Rohtak. This year,

new facilities like emission labs for BS-6 development of gasoline

and diesel, airbag test facility for vehicle level testing of passenger

air bag and curtain airbag has been made operational at Rohtak.

Several component level test facilities have been installed for part

validation to reduce the sub-system design issues.

These new facilities will further strengthen and improve the

Company’s R&D capability in following areas:

1. Testing and judgment capability.

2. Co-relation between physical and virtual evaluation in critical

areas like crash, durability, NVH to provide quality input at

concept & design proto stage.

3. Root cause analysis through experimental testing.

4. Simulating customer usage pattern in lab environment.

5. Benchmarking vehicles and incorporate learning in future

models for design enhancement.

With the objective to bring innovative product offerings in line

with the changing customer aspirations, the R&D teams have

initiated several advance engineering projects with technology

partners to gain early insight and seek avenues for introduction

of new models.

Specific areas in which R&D has been carried out:Innovation and continuous improvement are key drivers for the

Company. Eighty patent applications were filed by the Company

and nineteen technical papers were presented at various national

and international conferences. The continuous development of

new technologies and features for enhancing value proposition

to the customers has helped the Company in the following areas:

• Comfort & Convenience: • Wider 5th generation platform and efficient layout, offers

roomier cabin and increased boot space to the customers of

new Dzire and Swift.

• LED projector headlamp & LED daytime running lamps

introduced in Dzire, Swift and S-Cross face-lift.

• Android Auto extended to other models i.e. Ciaz, Baleno,

Ertiga, Swift, Dzire, S-Cross and Vitara Brezza for enhanced

passenger convenience.

• Improved gear shift performance by reduction in the shifting

force in Swift and Dzire.

• New Swift and Dzire come with well-cushioned soft fabric

seats, providing additional comfort to the occupants.

• Improved Aesthetics: • The all new Dzire comes with authentic sedan styling.

• Signature effect in front and rear lamps of Dzire, Swift and

S-Cross by use of LED technology.

• Introduced floating roof type design in new Swift with garnish

on rear door and C pillars.

• Appealing layered dashboard in new Swift and Dzire, adds to

the premium feel of the vehicle.

• Flush type reverse parking sensor introduced in Swift and

Dzire for better aesthetics.

• New sporty design steering wheel in Swift and Dzire.

• New precision cut two-tone alloy wheels in Swift, Dzire and

S-Cross.

• Unique style “grill upper design with chrome around” in

S-Cross.

• NVH & Safety • Anti-Lock Braking (ABS) is now a standard feature in all the

variants of Ignis and models positioned above Ignis.

• Introduced speed limiting function in taxi version of Alto 800,

Celerio, Dzire and Eeco.

• Enhanced NVH performance in Dzire and Swift:

- With Introduction of new 5th generation platform.

- Vibration dampeners.

- Optimisation of gear tooth profile and transmission case

shape.

- Pendulum mounting of engine.

- Focused source noise reduction and path level

optimisation.

• Weight Reduction & Fuel Efficiency improvement

• Extensive usage of ultrahigh strength steels to make

light weight yet rigid BIW structure with enhanced safety

performance in the new A & B –platform.

51

• Adopted a number of initiatives for weight reduction like

Polyurethane (PU) silencer, new driver side airbag design

with next generation dynamic damper, hollow stabilizer bar,

etc.

• Use of advanced simulation facilities for weight optimisation

and fuel efficiency improvement.

• Various initiatives taken for improving fuel efficiency were:

- Adopting low-friction bearings with reduced torque loss for

reducing friction.

- Mechanical loss reduction by using low viscosity

transmission fluid.

- Low rolling resistance tire.

Benefits derived as a result of above R&D:• Launched new Dzire, an authentic compact sedan designed for

the young, aspirational and indulgent Indian customer.

• Launched the all new Swift; 3rd generation of this iconic model

to address aspirations of young and ever-changing customer.

• Launched refreshed S-Cross in an all-new, bold and assertive

form. Also, the power train is now equipped with Smart Hybrid

system.

• Introduction of refreshed Celerio with new exteriors, interiors

and loaded with safety features.

• Launched bold, sporty and trendy Celerio X.

• Launched CNG and cab chassis variant of Super Carry.

• Introduced dedicated taxi line up – Tour H1 (Alto 800), Tour

H2 (Celerio), Tour S (Dzire) along with CNG variant and Tour V

(Eeco).

• The Company saved ` 60.50 crore by localisation and ` 157.9

crore from implementation of Value Analysis / Value Engineering

(VA / VE) concepts.

Future plan of actionTo cater changing business environment, future safety regulations,

evolution of future technologies and evolving customer needs,

the Company’s R&D team is working proactively in the following

areas:

• Introduction of new models, full model and facelift change of

existing models.

• Upgrade platform and engine to meet upcoming safety,

emission and Corporate Average Fuel Economy (CAFE)

regulations being announced by the Govt. of India.

• Develop Electric Vehicle (EV) and HEV technology for multiple

platforms.

• Advanced engineering projects in the field of infotainment,

powertrain and safety are under progress with technology partners

to launch India relevant technologies at affordable cost.

• Build stronger, safer, lighter and more fuel-efficient vehicles

with focus on high quality.

• Introduction of new technologies in-line with global trend for

aesthetic improvement and enhancing feature experience.

C. Technology Absorption, Adaptation and Innovation

1. Efforts in brief made towards technology absorption, adaptation and innovation

• Capability enhancement in the area of design, evaluation

and judgment with the expansion of R&D infrastructure and

manpower training.

• Strengthen Design Failure Mode and Effect Analysis

(DFMEA) and DMDR for design robustness to ensure better

design quality

• Upgrading the Company’s capability in the areas of

Computer Aided Engineering (CAE) and Computational

Fluid Dynamics (CFD) simulation for faster product

development

• Product development efforts are further strengthened

by analysis of various competitor products across the

globe through focused performance and functional

benchmarking of vehicle as well as sub-systems.

• Establishing simulation methods to replicate market quality

feedback and suggestions for design improvement.

• Capability augmentation in the area of EV, HEV, telematics

and infotainment through various study projects.

• Joint efforts with suppliers for idea generation activities to

reduce cost and provide better value to customers.

• Generate and implement VE ideas at concept and design

stage to achieve quality, performance and cost targets.

• Focus on capturing passenger comfort for Indian conditions

and incorporating the feedback in future models.

• Vehicle body design using high tensile material and new

light weight energy efficient structure.

• Capability enhancement in the area of prototype to reduce

the development time and cost of proto parts.

2. Benefits derived as a result of above efforts • Attractive, high quality and value for money products.

• Develop new technologies at right cost, time and quality.

• Significant weight reduction in new models relative to

existing models without compromising performance and

durability.

• Improved safety for passengers and pedestrians

• High local content in new models leading to lower cost.

• Continuous reduction in product cost of existing models.

• Improved fuel efficiency.

• Improved profitability of models.

3. Technology inducted • New Dzire and Swift are based on Suzuki’s latest 5th

generation HEARTECT platform which is lighter, stronger

and safer.


52

• Android auto extended to other models sold through

Arena channel.

• Increased penetration of Smart Hybrid technology with

introduction in S-Cross.

• Advance AGS extended to Swift and Dzire for optimum fuel

efficiency and ease of driving.

• Twin cylinder CNG system introduced in Super Carry.

Year of Import: 2017-18

Status of absorption: The technologies have been fully absorbed.



New Delhi

27th April, 2018

Expenditure incurred on R&D

(` in million)

Particulars 2017-18 2016-17

A Capital Expenditure 3,570 3,491

B Net Revenue Expenditure 4,746 2,913

Total 8,316 6,404

D. Foreign Exchange Earnings & Outgo (Cash Basis)

During the year, total inflows (on cash basis) in foreign

exchange were ` 54,559 million and total outflows (on cash

basis) in foreign exchange were ` 93,284 million.

53

Annexure - E Form No. MR - 3Secretarial Audit ReportFor the financial year ended on 31St March, 2018[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial

Personnel) Rules, 2014]

To,

The Members

Maruti Suzuki India Limited

CIN: L34103DL1981PLC011375

Plot No.1, Nelson Mandela Road,

Vasant Kunj, New Delhi-110070

We have conducted the secretarial audit of the compliance of

the applicable statutory provisions and the adherence to good

corporate practices by Maruti Suzuki India Limited (hereinafter

referred as ‘the Company’), having its Registered Office at Plot

No.1, Nelson Mandela Road, Vasant Kunj, New Delhi-110070.

Secretarial Audit was conducted in a manner that provided us a

reasonable basis for evaluating the corporate conducts/statutory

compliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers,

minutes books, forms and returns filed and other records

maintained by the Company and also the information provided by

the Company, its officers, agents and authorised representatives

during the conduct of Secretarial Audit, we hereby report that in

our opinion, the Company has, during the audit period covering

the financial year ended 31st March, 2018, complied with the

statutory provisions listed hereunder and also that the Company

has proper Board processes and compliance mechanism in place

to the extent, in the manner and subject to the reporting made

hereinafter:

We have examined the books, papers, minute books, forms and

returns filed and other records maintained by the Company for

the financial year ended on 31st March, 2018 according to the

provisions of:

I. The Companies Act, 2013 (‘the Act’) and the rules made

thereunder;

II. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and

the rules made thereunder;

III. The Depositories Act, 1996 and the Regulations and Bye-

laws framed thereunder by the Depositories with regard

to dematerialisation / rematerialisation of securities and

reconciliation of records of dematerialised securities with all

securities issued by the Company;

IV. Foreign Exchange Management Act, 1999 and the rules

and regulations made thereunder. Further, there was no

transaction of Overseas Direct Investment which was

required to be reviewed during the period under audit;

V. The following Regulations and Guidelines prescribed under

the Securities and Exchange Board of India Act, 1992 (‘SEBI

Act’):

(a) The Securities and Exchange Board of India (Substantial

Acquisition of Shares and Takeovers) Regulations, 2011

including the provisions with regard to disclosures and

maintenance of records required under the said Regulations;

(b) Securities and Exchange Board of India (Prohibition of

Insider Trading) Regulations, 2015;

(c) The Securities and Exchange Board of India (Issue of

Capital and Disclosure Requirements) Regulations, 2009

[Not Applicable as the Company has not issued any

further share capital during the period under review];

(d) The Securities and Exchange Board of India (Share Based

Employee Benefits) Regulations, 2014; [Not Applicable

as the Company has not offered any shares or granted

any options pursuant to any employee benefit scheme

during the period under review];

(e) The Securities and Exchange Board of India (Issue

and Listing of Debt Securities) Regulations, 2008 [Not

Applicable as the Company has not issued and listed

any debt securities during the financial year under

review];

(f ) The Securities and Exchange Board of India (Registrars

to an Issue and Share Transfer Agents) Regulations,

1993 regarding the Companies Act and dealing with

client [Not Applicable as the Company is not registered

as Registrar to an Issue and Share Transfer Agent];

(g) The Securities and Exchange Board of India (Delisting of

Equity Shares) Regulations, 2009 [Not Applicable as the

Company has not delisted/propose to delist its equity

shares from any Stock Exchange during the financial

year under review];

(h) The Securities and Exchange Board of India (Buy Back

of Securities) Regulations, 1998 [Not Applicable as the

Company has not bought back/propose to buy-back any

of its securities during the financial year under review].

VI. Laws specifically applicable to the industry to which the Company

belongs, as identified by the management, that is to say:

1. Motor Vehicles Act, 1988

2. The Central Motor Vehicles Rules, 1989


54

For the compliances of Environmental Laws, Labour Laws & other

General Laws vis-à-vis The Sexual Harassment of Women at

Workplace (Prevention, Prohibition and Redressal) Act, 2013, our

examination and reporting is based on the documents, records

and files as produced and shown to us and the information and

explanations as provided to us, by the officers and management of

the Company and to the best of our judgment and understanding

of the applicability of the different enactments upon the Company,

in our opinion there are adequate systems and processes exist in

the Company to monitor and ensure compliance with applicable

Environmental Laws, Labour Laws & other General Laws.

We have also examined compliance with the applicable clauses of the following:1. Secretarial Standards with respect to Meetings of Board of

Directors (SS-1) and General Meetings (SS-2) issued by the

Institute of Company Secretaries of India.

2. Securities and Exchange Board of India (Listing Obligations

and Disclosure Requirements) Regulations, 2015.

During the period under review, the Company has complied

with the provisions of the Act, Rules, Regulations, Guidelines,

Standards etc. mentioned above.

We further report that The Board of Directors of the Company is constituted with

proper balance of Executive Directors, Non-Executive Directors,

Independent Directors and Woman Director. The changes in the

composition of the Board of Directors that took place during the

period under review were carried out in compliance with the

provisions of the Act. The composition as on 31st March, 2018

during the period under review is mentioned in Annexure - I.

Adequate notice(s) were given to all directors to schedule the

Board Meetings, agenda and detailed notes on agenda were sent

at least seven days in advance to all Directors and a system exists

for seeking and obtaining further information and clarifications

on the agenda items before the meeting and for meaningful

participation at the meeting.

As per the minutes of the meetings of the Board and Committees

of the Board signed by the Chairman, all the decisions of the

Board were adequately passed and the dissenting members’

views, if any, was captured and recorded as part of the minutes.

As per the records, the Company filed all the forms, returns,

documents and resolutions as were required to be filed with

the Registrar of Companies and other authorities and all the

formalities relating to the same is in compliance with the Act.

We further report that on review of the compliance mechanism

established by the Company, we are of the opinion that the

management has adequate systems and processes in the

Company commensurate with the size and operations of the

Company to monitor and ensure compliance with applicable laws,

rules, regulations and guidelines.

We further report that during the audit period the Company has

following specific events/actions having a major bearing on the

Company’s affairs in pursuance of the above referred laws, rules,

regulations, guidelines, standards etc. referred to above:-

(i) The Company, in pursuance to the Scheme of Amalgamation

between the Company and its seven wholly owned

subsidiaries, i.e, (i) Maruti Insurance Business Agency Limited;

(ii) Maruti Insurance Agency Services Limited; (iii) Maruti

Insurance Distribution Services Limited; (iv) Maruti Insurance

Agency Logistics Limited; (v) Maruti Insurance Agency

Solutions Limited; (vi) Maruti Insurance Broker Limited; and

(vii) Maruti Insurance Agency Network Limited, and the

respective shareholders and creditors of the Amalgamating

Companies, received the final order dated 27th June, 2017 of

the Hon’ble National Company Law Tribunal (NCLT), Principal

Bench, New Delhi;

(ii) Ms. Renu Sud Karnad was appointed as an Independent

Director of the Company with effect from 27th July, 2017.

(iii) Mr. Kazunari Yamaguchi was appointed as a Whole time

Director, designated as Director (Production) with effect

from 26th January, 2018 for a period of three years to fill

in the casual vacancy caused due to the resignation of

Mr. Shigetoshi Torii;

(iv) The Board of Directors appointed Mr. Sanjeev Grover

as the Company Secretary (Key Managerial Personnel)

and Compliance Officer of the Company with effect from

21st March, 2018 in place of Mr. S. Ravi Aiyar.

For RMG & AssociatesCompany Secretaries

CS Manish Gupta New Delhi Partner

27th April, 2018 FCS : 5123; C.P. No.: 4095

Note: This report is to be read with ‘Annexure I and II’ attached

herewith and forms an integral part of this report.

55

Annexure - I

Composition of the Board of Directors as on 31st March, 2018

Sl.

No.

Name Designation Category

1 Mr. Ravindra Chandra Bhargava Chairman Non-Executive

2 Mr. Kinji Saito Director Non-Executive

3 Mr. Osamu Suzuki Director Non-Executive

4 Mr. Toshihiro Suzuki Director Non-Executive

5 Mr. Kazuhiko Ayabe Director Non-Executive

6 Mr. Toshiaki Hasuike Director Non-Executive

7 Mr. Rajinder Pal Singh Director Non-Executive and Independent

8 Ms. Renu Sud Karnad Director Non-Executive and Independent

9 Mr. Davinder Singh Brar Director Non-Executive and Independent

10 Ms. Pallavi Shroff Director Non-Executive and Independent

11 Mr. Kenichi Ayukawa Managing Director and CEO Executive

12 Mr. Kazunari Yamaguchi Director (Production) Executive

Notes:-

1) Mr. Ravindra Chandra Bhargava is the Chairman and Non-Executive Director.

2) Out of the total composition of Board of Directors, 1/3rd is Independent Directors.

3) Out of the total composition of Board of Directors more than 50% are Non-Executive Directors.


56

Annexure - II

The Members


CIN: L34103DL1981PLC011375

Plot No.1, Nelson Mandela Road

Vasant Kunj, New Delhi-110070

Our Secretarial Audit Report for the financial year ended

31st March, 2018 of even date is to be read along with this letter:

Management’s Responsibility

1. It is the responsibility of management of the Company to

maintain secretarial records, devise proper systems to

ensure compliance with the provisions of all applicable laws

and regulations and to ensure that the systems are adequate

and operate effectively.

Auditor’s Responsibility

2. Our responsibility is to express an opinion on these

secretarial records, standards and procedures followed by

the Company with respect to secretarial compliances.

3. We believe that audit evidence and information obtained from

the Company’s management is adequate and appropriate for

us to provide a basis for our opinion.

4. Wherever required, we have obtained the management’s

representation about the compliance of laws, rules and

regulations and happening of events etc.

Disclaimer

5. The Secretarial Audit Report is neither an assurance as

to future viability of the Company nor of the efficacy or

effectiveness with which the management has conducted

affairs of the Company.

6. We have not verified the correctness and appropriateness of

financial records and Books of Accounts of the Company.

For RMG & AssociatesCompany Secretaries

CS Manish Gupta New Delhi Partner

27th April, 2018 FCS : 5123; C.P. No.: 4095

57

Dividend Distribution Policy

The Company has already laid down the Dividend Distribution

Guidelines (‘Dividend Guidelines’) which were approved by the

Board of Directors of the Company (‘Board’) on 30th October,

2014. The Securities and Exchange Board of India has amended

the Securities and Exchange Board of India (Listing Obligations

and Disclosure Requirements) Regulations, 2015 (‘Listing

Regulations’) under which the Company is required to formulate a

dividend distribution policy.

Pursuant to the aforesaid change in the Listing Regulations, the

Board has approved this Dividend Distribution Policy (‘Policy’) of

the Company on 23rd March, 2017.

The Company shall declare and pay dividend in accordance with

the provisions of the Companies Act, 2013, rules made thereunder

and Listing Regulations as amended from time to time.

Following points shall be considered while declaring dividend:

• Consistency with the Dividend Guidelines as laid out by the

Board

• Sustainability of dividend payout ratio in future

• Dividend payout ratio of previous years

• Macroeconomic factors and business conditions

Retained earnings are intended to be utilised for:

• Investments for future growth of the business

• Dealing with any possible downturns in the business

• Strategic investment in new business opportunities

The Company currently has only one class of shares i.e. equity

shares. As and when it proposes to issue any other class of

shares, the policy shall be modified accordingly.

Dividend guidelines

Background: Many shareholders have opined that the Company

should provide a dividend policy in the interest of providing

greater transparency to the shareholders.

The Board, at the time of approving the annual accounts in each

year, also decides the dividend to be paid to the shareholders

depending on the context of business in that year. A policy stated

by the current Board cannot be binding on future Board. However,

the current Board can form a guideline on dividend payout in

future in the interest of providing transparency to shareholders.

Board approvalThe Board accordingly approved the following guidelines for

dividend payment:

The Company would endeavour to keep the Dividend payout

ratio, except for reasons to be recorded, within the range of

18 percent to 40 percent. The actual dividend for each year would

be decided by the Board taking into account the availability of

cash, the profit level that year and the requirements of capital

investments.

Statutory Reports | Corporate Governance Report

58

Corporate Governance Report

Corporate Governance Philosophy

Maruti Suzuki India Limited (the Company) is fully committed

to practising sound corporate governance and upholding the

highest business standards in conducting business. Being a

value-driven organisation, the Company has always worked

towards building trust with shareholders, employees, customers,

suppliers and other stakeholders based on the principles of

good corporate governance, viz., integrity, equity, transparency,

fairness, disclosure, accountability and commitment to values.

The Company fosters a culture in which high standards of ethical

behaviour, individual accountability and transparent disclosure

are ingrained in all its business dealings and shared by its Board

of Directors, management and employees. The Company has

established systems and procedures to ensure that its Board of

Directors is well-informed and well-equipped to fulfil its overall

responsibilities and to provide the management with the strategic

direction needed to create long-term shareholder value.

Management Structure and Shared Leadership

The Company has a multi-tier management structure with the

Board of Directors at the top. The Company has five business

verticals viz. Quality Assurance, Production, Engineering, Supply

Chain and Marketing & Sales. Besides the above, the support

functions of Human Resources, Legal & Secretarial, Finance,

Information Technology and Corporate Planning report directly

to the Managing Director & CEO. The top level management of

these verticals consists of a team of two persons, one of whom

is a Japanese manager and the other, an Indian manager. The

managers at the top level are designated as Senior Executive

Officers (Sr.EOs)/Executive Officers (EOs). The board meetings of

the Company mark the presence of all the Sr. EOs / EOs, as they act

as a channel between the Board above them and the employees.

This structure not only allows easy and quick communication of

field information to the board members but also gives the top

management the opportunity to give recommendations relevant

to their business operations. The Sr.EOs/EOs are supported by

the divisional heads and the departmental heads. Through this,

it is ensured that:

• Strategic supervision is provided by the Board;

• Control and implementation of the Company’s strategy is

achieved effectively;

• Operational management remains focused on implementation;

• Information regarding the Company’s operations and financial

performance are made available adequately;

• Delegation of decision making with accountability is achieved;

• Financial and operating control and integrity are maintained at

an optimal level; and

• Risk is suitably evaluated and dealt with.

Board of Directors

Composition of the BoardAs on 31st March, 2018, the Company’s Board consists of twelve

members. The Chairman of the Board is a Non-Executive Director.

The Company has an optimum combination of Executive and Non-

Executive Directors in accordance with Regulation 17 of SEBI

(Listing Obligations and Disclosure Requirements) Regulations,

2015 (‘Listing Regulations’). The Board has two Executive Directors

and ten Non-Executive Directors, of whom four are Independent

Directors. Their composition is given in Table 1. Except Mr. Osamu

Suzuki and Mr. Toshihiro Suzuki who are related to each other, none

of the other director is related to any other director. All Independent

Directors are persons of eminence and bring a wide range of

expertise and experience to the Board thereby ensuring the best

interests of stakeholders and the Company.

Table 1: Composition of the Board as on 31st March, 2018

Sl.

No.

Name Category ***No. of directorship(s) No. of committee(s)

Public Private Member (including

chairpersonship)

Chairman

1. Mr. R. C. Bhargava Chairman, Non-Executive 5 1 4 2

2. Mr. Kenichi Ayukawa Managing Director and CEO, Executive 4 1 2 -

3. Mr. Kazunari Yamaguchi* Executive 2 1 - -

4. Mr. Osamu Suzuki Non-Executive 1 - - -

5. Mr. Toshihiro Suzuki Non-Executive 1 - - -

6. Mr. Toshiaki Hasuike Non-Executive 1 - - -

7. Mr. Kazuhiko Ayabe Non-Executive 1 - - -

8. Mr. Kinji Saito Non-Executive 1 - - -

9. Mr. Davinder Singh Brar Independent 3 12 6 2

10. Mr. R.P. Singh Independent 3 1 4 -

11. Ms. Pallavi Shroff Independent 5 11 2 -

12. Ms. Renu Sud Karnad ** Independent 10 1 8 2

*Mr. Kazunari Yamaguchi was appointed as Director (Production) w.e.f. 26th January, 2018.

** Ms. Renu Sud Karnad was appointed as an Independent Director w.e.f 27th July, 2017.

*** Doesn’t include directorship in foreign companies.

59

In terms of Regulation 26(1) of the Listing Regulations:

• Foreign companies, private limited companies and companies

under section 8 of the Companies Act, 2013 are excluded for

the purpose of considering the limit of committees.

• The committees considered for the purpose are audit committee

and stakeholders’ relationship committee.

• None of the directors was a member of more than 10

committees or chairman of more than 5 committees across all

listed companies in which he/she is a Director.

None of the directors holds equity shares in the Company.

Board Meetings

The Board met five times during the year on 27th April, 2017,

27th July, 2017, 27th October, 2017, 25th January, 2018 and

21st March, 2018. The Board meets at least four times in a

year with a maximum gap of one hundred and twenty days

between any two meetings. Additional meetings are held,

whenever necessary. Table 2 gives the attendance record of

the directors at the board meetings as well as the last annual

general meeting (AGM).

Table 2: Board Meeting and AGM Attendance Record of the Directors in 2017-18

Sl.

No.

Name Number of Board Meetings attended

(Total meetings held: 5)

Whether attended last AGM

(5th September, 2017)

1. Mr. R. C. Bhargava 5 Yes

2. Mr. Kenichi Ayukawa 5 Yes

3. Mr. Kazunari Yamaguchi * 1 N.A.

4. Mr. Toshiaki Hasuike 5 No

5. Mr. Kazuhiko Ayabe 4 Yes

6. Mr. Osamu Suzuki 4 Yes

7. Mr. Toshihiro Suzuki 4 Yes

8. Mr. Kinji Saito 4 Yes

9. Mr. Davinder Singh Brar 5 Yes

10. Mr. R.P. Singh 5 Yes

11. Ms. Pallavi Shroff 3 No

12. Ms. Renu Sud Karnad*** 3 Yes

13. Mr. Shigetoshi Torii** 4 Yes

* Mr. Kazunari Yamaguchi was appointed w.e.f 26th January, 2018.

** Mr. Shigetoshi Torii resigned w.e.f 25th January, 2018.

*** Ms. Renu Sud Karnad was appointed w.e.f. 27th July, 2017.

Information Supplied to the Board

The Board has complete access to all information of the Company.

The following information is provided to the Board and the agenda

papers for the meetings are circulated seven days in advance of each

meeting:

• Annual operating plans, capital and revenue budgets and updates;

• Quarterly results of the Company and its operating divisions or

business segments;

• Minutes of the meetings of the audit committee and other

committees of the Board;

• Information on recruitment and remuneration of senior officers

just below the board level, including appointment or removal of

Chief Financial Officer and Company Secretary;

• Materially important show cause, demand, prosecution and

penalty notices;

• Fatal or serious accidents and dangerous occurrences;

• Any materially significant effluent or pollution problems;

• Any material relevant default in financial obligations to and by

the Company or substantial non-payment for goods sold by the

Company;

• Any issue which involves possible public or product liability

claims of a substantial nature;

• Details of any joint venture or collaboration agreement;

• Transactions that involve substantial payment towards goodwill,

brand equity or intellectual property;

• Significant labour problems and their proposed solutions;

• Any significant development in the human resources and

industrial relations front;

• Sale of investments, subsidiaries, assets which are material in

nature and not in the normal course of business;

• Quarterly details of foreign exchange exposure and the steps

taken by the management to limit the risks of adverse exchange

rate movement; and

• Non-compliance of any regulatory, statutory nature or listing

requirements and shareholder services such as non-payment

of dividend, delay in share transfer, etc.

Committees of the Board

I. Audit CommitteeComposition and Meetings

Table 3 shows the composition of the audit committee and the details

of attendance. The audit committee met seven times during the year

on 27th April, 2017, 27th July, 2017, 24th August, 2017, 27th October,

2017, 20th December, 2017, 25th January, 2018 and 21st March, 2018.

All the members of the audit committee are financially literate and

Mr. Davinder Singh Brar, the Chairman, has expertise in accounting

and financial management. The Chairman attended the last annual

general meeting to answer shareholders’ queries.


60

Table 3: Composition as on 31st March, 2018 and Attendance

Sl.

No.

Name Category Designation No. of meetings attended in

2017 - 18 (Total meetings held: 7)

1. Mr. Davinder Singh Brar Independent Chairman 7

2. Mr. Kenichi Ayukawa Executive Member 6

3. Mr. R. P. Singh * Independent Member 5

4. Ms. Pallavi Shroff Independent Member 6

5. Ms. Renu Sud Karnad * Independent Member 2

*Mr. R.P. Singh and Ms. Renu Sud Karnad were appointed as the members of the audit committee w.e.f 27th July, 2017.

The Company Secretary acts as the Secretary to the audit

committee. Wherever required, other directors and members of

the management are also invited.

Role

The role/terms of reference of the audit committee include the

following:

1. Oversight of the Company’s financial reporting process and

the disclosure of its financial information to ensure that the

financial statements are correct, sufficient and credible.

2. Recommending the appointment, remuneration and terms of

appointment of the auditors of the Company.

3. Approval of payment to statutory auditors for any other

services rendered by the statutory auditors.

4. Reviewing, with the management, the annual financial

statements and auditors' report before submission to the

Board for approval, with particular reference to:

a) Matters required to be included in the directors’

responsibility statement to be included in the Board’s

report in terms of clause (c) sub-section (3) of Section

134 of the Companies Act, 2013.

b) Changes, if any, in accounting policies and practices and

reasons for the same.

c) Major accounting entries involving estimates based on

the exercise of judgment by the management.

d) Significant adjustments made in the financial statements

arising out of audit findings.

e) Compliance with listing and other legal requirements

relating to financial statements.

f) Disclosure of any related party transactions.

g) Qualifications in the draft audit report.

5. Reviewing, with the management, the quarterly financial

statements before submission to the Board for approval.

6. Reviewing, with the management, the statement of uses/

application of funds raised through an issue (public issue,

rights issue, preferential issue, etc.), the statement of funds

utilised for purposes other than those stated in the offer

document / prospectus/ notice and the report submitted

by the monitoring agency, monitoring the utilisation of

proceeds of a public or rights issue, and making appropriate

recommendations to the Board to take steps in this matter.

7. Review and monitor the auditors' independence and

performance, and effectiveness of the audit process.

8. Approval of transactions of the Company with related parties

and any subsequent modification of such transactions.

9. Scrutiny of inter-corporate loans and investments.

10. Valuation of undertakings or assets of the Company,

wherever it is necessary.

11. Evaluation of internal financial controls and risk evaluation

and mitigation systems.

12. Reviewing with the management the performance of

statutory and internal auditors, and adequacy of the internal

control systems.

13. Reviewing the adequacy of the internal audit function

including the structure of the internal audit department,

staffing and seniority of the official heading the department,

reporting structure, coverage and frequency of internal audit.

14. Discussions with internal auditors of any significant findings

and follow up there on.

15. Reviewing the findings of any internal investigations by

the internal auditors into matters where there is suspected

fraud or irregularity or a failure of internal control systems

of a material nature and reporting the matter to the Board.

16. Discussion with statutory auditors before the audit commences,

about the nature and scope of audit as well as post audit

discussion to ascertain and resolve any areas of concern.

17. Look into the reasons for substantial defaults, if any,

in the payment to the depositors, debenture holders,

shareholders (in case of non-payment of declared

dividends) and creditors.

18. Review the functioning of the whistle blower mechanism.

19. Approval of appointment of the Chief Financial Officer after

assessing the qualifications, experience, background, etc. of

the candidate.

20. Carrying out any other function as mentioned in the charter

of the audit committee.

61

II. Nomination and Remuneration Committee (NRC)Composition and Meetings

Table 4 shows the composition of the NRC and the details of attendance.


Sl.

No.


2017 - 18 (Total meetings held:4)

1. Mr. Davinder Singh Brar Independent Chairman 4

2. Mr. R.C. Bhargava Non-Executive Member 4

3. Mr. Toshihiro Suzuki Non- Executive Member 3

4. Ms. Renu Sud Karnad * Independent Member 1

* Ms. Renu Sud Karnad was appointed as a member of NRC w.e.f 27th July, 2017.

The Company Secretary acts as the Secretary to the NRC.

Terms of Reference

The role/terms of reference of the NRC include the following:

1. Identify persons who are qualified to become directors

and who may be appointed in senior management and

recommend to the Board their appointment and removal.

2. Formulate criteria for evaluation of the performance of every

director and the Board as a whole.

3. Formulate the criteria for determining qualification, positive

attributes and independence of a director and devising a

policy on board diversity.

4. Recommend to the Board a remuneration policy applicable

to directors, key managerial personnel and other employees.

5. Ensure that:

a) The level and composition of remuneration is reasonable

and sufficient to attract, retain and motivate directors of

the quality required to run the Company successfully.

b) Relationship of remuneration to performance is clear

and meets appropriate performance benchmarks.

c) Remuneration to directors, key managerial personnel

and senior management involves a balance between

fixed and incentive pay reflecting short and long-term

performance objectives appropriate to the working of

the Company and its goals.

d) Any other action as may be required under the

Companies Act, 2013 and any amendment thereto,

Listing Regulations and guidelines/circular issued by

the Securities and Exchange Board of India from time to

time.

Performance Evaluation Criteria for Independent Directors &

Remuneration Policy

For performance evaluation criteria for Independent Directors

and details of remuneration policy, please refer to the Board’s

Report.

Remuneration of Directors

Table 5 gives details of the remuneration for the financial year

ended on 31st March, 2018. The Company did not advance any

loans to any of its directors in the year under review.

Table 5: Details of Remuneration for the financial year ended 31st March, 2018

Sl.

No.

Name Salary &

Perquisites

(in `)

Performance

Linked Bonus*

(in `)

Sitting Fees

(in `)

Commission

(in `)

Total

(in `)

1. Mr. R.C. Bhargava - - 8,50,000 1,20,00,000 1,28,50,000

2. Mr. Kenichi Ayukawa 2,89,68,000 1,63,20,000 - - 4,52,88,000

3. Mr. Toshiaki Hasuike - - 5,00,000 - 5,00,000

4. Mr. Kazuhiko Ayabe - - 4,00,000 - 4,00,000

5. Mr. Kazunari Yamaguchi** 34,92,637 19,16,521 - - 54,09,158

6. Mr. Kinji Saito - - 4,00,000 - 4,00,000

7. Mr. Toshihiro Suzuki - - 5,50,000 - 5,50,000

8. Mr. Osamu Suzuki - - 4,00,000 - 4,00,000

9. Mr. Davinder Singh Brar - - 14,00,000 52,00,000 66,00,000

10. Mr. Rajinder Pal Singh - - 11,00,000 36,00,000 47,00,000

11. Ms. Pallavi Shroff - - 9,00,000 30,00,000 39,00,000

12. Ms. Renu Sud Karnad *** - - 5,50,000 22,00,000 27,50,000

13. Mr. Shigetoshi Torii **** 1,28,67,400 69,96,000 - - 1,98,63,400

*The payment of performance linked bonus is subject to the approval of the Board of Directors.

Apart from the above, there were no pecuniary transactions between the Company and Directors.

**Mr. Kazunari Yamaguchi was appointed with effect from 26th January, 2018.

***Ms. Renu Sud Karnad was appointed w.e.f 27th July, 2017.

**** Mr. Shigetoshi Torii resigned w.e.f 25th January, 2018.


62

The performance criteria for the purpose of payment of

remuneration to the directors are in accordance with the Nomination

and Remuneration Policy. For details on performance evaluation,

please refer to the Board’s Report. There is no severance fee. The

Company has not issued any stock options. No employee of the

Company is related to any director of the Company.

Remuneration of the Non-Executive Directors

Members of the Company had approved the payment of

commission to Non-Executive Directors within the limit of one

percent of the net profits of the Company and subject to the total

payments not exceeding ` 30 million per annum. The criteria for

the purpose of determination of the amounts of commission are in

accordance with the Nomination and Remuneration Policy.

III. Corporate Social Responsibility Committee (CSR)Composition and Meetings

Table 6 shows the composition of the Corporate Social

Responsibility Committee and the details of attendance.


Sl.

No.



1. Mr. R.C. Bhargava Non-Executive Chairman 2


3. Mr. R.P. Singh Independent Member 2

The Company Secretary acts as the Secretary to the CSR committee.

Terms of reference

1. To frame the CSR policy and its review from time-to-time.

2. To ensure effective implementation and monitoring of the CSR activities as per the approved policy, plans and budget.

3. To ensure compliance with the law, rules and regulations governing the CSR and to periodically report to the Board of Directors.

IV. Risk Management Committee (RMC)Composition and Meetings

Table 7 shows the composition and meetings of the RMC.


Sl.

No.



1. Mr. R.C. Bhargava Non-Executive Chairman 1


3. Mr. Kazunari Yamaguchi * Executive Member N.A.

4. Mr. Ajay Seth Chief Financial Officer Member 1

5. Mr. R. S. Kalsi Sr. Executive Officer

(Marketing & Sales)

Member 1

* Mr. Kazunari Yamaguchi was appointed as member of RMC w.e.f 26th January, 2018 and the above meeting was held on 6th January, 2018.

The Company Secretary acts as the Secretary to the RMC and

Vice President (Corporate Planning) coordinates its activities.

Roles and Responsibilities of the RMC

1. Preparation of a charter / policy on risk assessment and

minimisation and mitigation process.

2. Preparation and review of a risk library.

3. Monitoring and reviewing risk management and mitigation plan.

Additionally, an Executive Risk Management Committee

(ERMC) is in place at the management level to review the risk

management activities of the Company on a regular basis. The

composition of the ERMC consists of the Managing Director &

CEO, Director (Production), Vertical Heads and Executive Officers

of the Company. The Risk Management Department periodically

organises reviews of the risk mitigation and implementation plans

of risks with Chairman/Top management.

V. Stakeholders’ Relationship Committee (SRC) Composition

Table 8 shows the composition of the SRC. Mr. R. C. Bhargava, the

Chairman attended the last annual general meeting to address

shareholders’ queries.

Table 8: Composition as on 31st March, 2018

Sl.

No.

Name Category Designation

1. Mr. R.C. Bhargava Non-Executive Chairman

2. Mr. Davinder Singh Brar Independent Member

3. Mr. Kenichi Ayukawa Executive Member

The Company Secretary is the Compliance Officer and acts as the

Secretary to the committee.

63

Objective

The committee oversees redressal of shareholders’ and investors’

grievances, transfer of shares, non - receipt of annual report,

non - receipt of declared dividends and related matters. The

committee also oversees the performance of the registrar and

transfer agent, recommends measures for overall improvement

in the quality of investors’ services, approves issue of duplicate

/ split / consolidation of share certificates and reviews all matters

connected with the securities’ transfers.

In order to provide efficient and timely services to the investors, the

Board has delegated the power of approval of issue of duplicate

/ split / consolidation of share certificates, transfer of shares,

transmission of shares, dematerialisation / rematerialisation of

shares not exceeding 2000 equity shares per transaction to the

Managing Director and Company Secretary severally.

Investor Grievance Redressal

During the year, 71 complaints were received and resolved. No

transfer of shares was pending as on 31st March, 2018.

General Body Meetings

Table 9: Details of the last three AGMs of the Company

Financial Year Location Date Time

2014-2015 Air Force

Auditorium,

Subroto Park,

New Delhi

4th September,

2015

10:00 a.m.

2015-2016 8th September,

2016

10:00 a.m.

2016-2017 5th September,

2017

10:00 a.m.

The Company passed one special resolution in the annual general

meeting held on 5th September, 2017 adopting a new set of

Memorandum and Articles of Association. The special resolution

was not required to be put through postal ballot.

Disclosures made by the Management to the Board

During the year, there were no transactions of a material nature

with the promoters, the directors or the management, their

subsidiaries or relatives, etc. that had any potential conflict with

the interests of the Company. All disclosures related to financial

and commercial transactions where directors may have a potential

interest are provided to the Board and the interested directors do

not participate in the discussion nor do they vote on such matters.

Related Party Transactions

None of the transactions with any of the related parties was in

conflict with the interests of the Company.

Code of Conduct for the Board of Directors and Senior Management Personnel

The Company has laid down a code of conduct for the members

of the Board and identified senior management personnel of the

Company.

The Company’s code of conduct has been posted on its website

www.marutisuzuki.com The code of conduct was circulated to all

the members of the Board and senior management personnel and

they had affirmed their compliance with the said code of conduct

for the financial year ended on 31st March, 2018. A declaration

to this effect signed by the Managing Director & CEO of the

Company forms part of this report as Annexure - A.

CEO/ CFO Certification

The Company has institutionalised the framework for CEO/

CFO certification by establishing a transparent “controls self

assessment” mechanism, thereby laying the foundation for

development of the best corporate governance practices

which are vital for a successful business. It is the Company’s

endeavor to attain the highest level of governance to enhance

the stakeholders’ value. To enable certification by CEO/CFO

for the financial year 2017-2018, key controls over financial

reporting were identified and subjected to self-assessment by

control owners in the form of completion of self-assessment

questionnaires through a web based online tool called “Controls

Manager”. The self-assessments submitted by control owners

were further reviewed and approved by their superiors and the

results of the self-assessment process were presented to the

auditors and the audit committee. The whole exercise was carried

out in an objective manner to assess the effectiveness of internal

financial controls including controls over financial reporting during

the financial year 2017 - 2018.


64

Enabling controls self-assessments through the “Controls Manager”

As required under Regulation 17 of the Listing Regulations, a

certificate duly signed by the Managing Director & CEO and the

Chief Financial Officer was placed before the Board of Directors

at its meeting held on 27th April, 2018.

Legal Compliance Reporting

The Board periodically reviews reports of compliance with all

laws applicable to the Company as well as steps taken by the

Company to rectify instances of non-compliances. The Company

has developed comprehensive legal compliance scheduling and

management software by which specific compliance tasks are

assigned to specified employees. The software enables planning

and monitoring of all compliance activities across the Company.

Code for Prevention of Insider Trading Practices

The Company has instituted a comprehensive code of conduct

in compliance with the SEBI regulations on prevention of

insider trading. The code lays down guidelines, which advise

on procedures to be followed and disclosures to be made,

while dealing in shares of the Company and cautions on the

consequences of non-compliances.

Familiarization Programme/ Policy on Related Party Transactions/ Policy on Material Subsidiaries

The web links of familiarisation programmes for the

Independent Directors, policy on related party transactions

and policy on material subsidiaries are as under:

a. h t t p s : / / m a r u t i s t o r a g e n e w. b l o b . c o r e .w i n d o w s . n e t /

msilintiwebpdf/Familiarization_Programme.pdf

b. h t t p s : / / m a r u t i s t o r a g e n e w. b l o b . c o r e .w i n d o w s . n e t /

msilintiwebpdf/Policy_on_Related_Party_Transactions.pdf

c. h t t p s : / / m a r u t i s t o r a g e n e w. b l o b . c o r e .w i n d o w s . n e t /

msilintiwebpdf/Policy_on_subsidiary_companies.pdf

Whistle Blower Mechanism

The Company has in place an established and effective mechanism

called the Whistle Blower Policy (Policy). The mechanism under

the Policy has been appropriately communicated within the

organisation. The purpose of this policy is to provide a framework

to promote responsible whistle blowing by employees. It

protects employees wishing to raise a concern about serious

irregularities, unethical behaviour, actual or suspected fraud

within the Company. The Chairman of the audit committee is

the ombudsperson and direct access has been provided to the

employees to contact him through e-mail, post and telephone for

reporting any matter. No person has been denied access to the

Ombudsperson/Audit Committee.

Details of Non-Compliance

No penalties or strictures were imposed on the Company by stock

exchanges or SEBI or any statutory authority on any matter related

to the capital market during the last three years.

Identify Controls

Circulate online control feedback

Seek and reportinputs fromcontrol owners

Key Steps Process for reporting

RACM Control Questionnaires

Control DashBoard

Survey Inputs

Approving Authority

Reviewing

Flow

to U

pper

Hie

rarc

hy

Authority

Control Owners

RACM RACM*

* RACM: Risk & Control Matrix

65

Subsidiary Companies

A statement, wherever applicable, of all significant transactions and arrangements entered into by the Company’s subsidiaries is

presented to the Board of the Company at its meetings.

The audit committee of the Company reviews the financial statements and investments made by unlisted subsidiary companies. The

minutes of unlisted subsidiary companies are placed before the Board.

Shareholders’ Information

Means of Communication

Financial results Quarterly, half-yearly and annual financial results are published in ‘The Hindu-Business Line’,

‘Financial Express’ and in Hindi editions of ‘Jansatta’ and ‘Hindustan’.

Monthly sales/production Monthly sales and production figures are sent to stock exchanges as well as displayed on the

Company’s website www.marutisuzuki.com.

News releases All official news releases are sent to stock exchanges as well as displayed on the Company’s website

www.marutisuzuki.com.

Website The Company’s website www.marutisuzuki.com contains a dedicated segment called ‘Investors’

where all information needed by members is available including ECS mandate, nomination form

and annual report. The website, inter-alia, also displays information regarding presentation made to

media/ analysts/ institutional investors, financials, press releases, stock information, shareholding

patterns, details of unclaimed dividend, etc.

Annual report In our endeavor to protect the environment, the Company sent the annual report for the year 2016-

2017 through e-mails to a large number of members who had registered their e-mail ids with either

depository participant (DP) or the Registrar & Transfer Agent (RTA) or the Company. This also helped

the Company in saving a huge cost towards printing and dispatch.

For those members whose e-mail ids were not registered, the annual report in physical mode was sent

by post to their registered addresses.

BSE Listing Centre & NEAPS

(NSE Electronic Application Processing System)

All disclosures and communications to BSE Limited (BSE) and National Stock Exchange of India

Limited (NSE) are filed electronically through BSE Listing Centre and NEAPS.

SCORES (SEBI Complaints Redressal System) SEBI commenced processing of investor complaints in a centralised web-based complaints redressal

system i.e. SCORES. The Company supported SCORES by using it as a platform for communication

between SEBI and the Company.

Exclusive e-mail id’s for investors Following e-mail ids have been exclusively dedicated for the investors’ queries:

[email protected]

[email protected]

Queries relating to annual report may be sent to [email protected] and queries relating to transfer

of shares and splitting/ consolidation / remat of shares, payment of dividend, etc. may be sent to

[email protected]

Request to members The members of the Company who are holding shares in demat form are requested to kindly update

their e-mail ids with their depository participants and those who are holding shares in physical forms

kindly get it registered with Karvy Computershare Pvt. Ltd., the Registrar and Share Transfer Agent of the

Company.

Additional Information

Annual General MeetingDate: 23rd August, 2018

Day: Thursday

Time: 10:00 a.m.

Venue: Air Force Auditorium, Subroto Park, New Delhi – 110 010

Financial Year

Financial Year: 1st April to 31st MarchFor the year ending 31st March 2019, results will be announced:

By the end of July, 2018: First quarter results

By the end of October, 2018: Second quarter results

By the end of January, 2019: Third quarter results

By the end of April, 2019: Fourth quarter and annual results

Book ClosureThe period of book closure is from Friday, the 17th August, 2018 to

Thursday, 23rd August, 2018 (both days inclusive).

Dividend PaymentSubject to the approval of the members in the annual general meeting,

a dividend of ` 80/- per equity share (face value ` 5 per equity share)

for the year 2017 - 2018 will be paid on or after 28th August, 2018, to

those whose names appear in the register of members / beneficial

owners at the close of business hours on 16th August, 2018.

Reminders were sent to the members requesting them to claim

unclaimed dividend for the year 2009-10. Some members claimed

their unclaimed dividends. The payments were made directly to

their bank accounts wherever the particulars were available, under

intimation to those entitled. The balance remaining unclaimed

was transferred to the Investor Education & Protection Fund (IEPF)

within the stipulated time.


66

Listing on Stock ExchangesThe equity shares of the Company are listed on BSE, Phiroze

Jeejeebhoy Towers, Dalal Street Mumbai – 400001 and NSE,

Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E)

Mumbai – 400 051. The annual listing fee for the year 2018-19

has been paid to both the stock exchanges. Table 10 lists the

Company’s stock exchange codes. The Company will pay the

annual custodial fee for the year 2018-19 to both the depositories

namely, National Securities Depository Limited (NSDL) and

Central Depository Services (India) Limited (CDSL) on receipt of

the invoices.

Table 10: Stock Code

BSE Limited 532500

National Stock Exchange of India Limited MARUTI

ISIN INE585B01010

Stock Market Data

Table 11 gives the monthly high and low prices of the Company’s

equity shares on BSE and NSE for the year 2017- 2018. Chart A

plots the movement of the Company’s share prices on BSE vis-a-

vis BSE Sensex for the year 2017 - 2018.

Table 11: Monthly High & Low Quotation of the Company’s Equity Share

Month National Stock Exchange Bombay Stock Exchange

High (`) Low (`) High (`) Low (`)

Apr 17 6589 6021 6585 6024

May 17 7248 6602 7239 6605

Jun 17 7480 7085 7469 7087

Jul 17 7765 6700 7779 7218

Aug 17 7920 7380 7920 7377

Sept 17 8200 7651 8200 7651

Oct 17 8279 7690 8282 7690

Nov 17 8696 8080 8695 8083

Dec 17 9996 8450 10000 8455

Jan 18 9789 9250 9790 9236

Feb 18 9563 8601 9560 8500

Mar 18 9084 8542 9085 8544

Chart A

10000 3800037000360003500034000330003200031000300002900028000270002600025000240002300022000210002000019000180001700016000150001400013000120001100010000

9500

9000

8500

8000

7500

7000

6500

6000

5500

5000

Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

Ma

ruti

Su

zuk

i S

ha

re p

rice

Sensex Maruti Stock

Se

nse

x

67

Registrar and Transfer Agent

Karvy Computershare Private LimitedKarvy Selenium Tower B, Plot 31-32

Gachibowli, Financial District, Nanakramguda

Hyderabad – 500 032

Phone No.: 040- 67162222

Fax No. : 040-23001153

Toll Free: 1800-345-4001

Mail Id: [email protected]

Website: www.karvycomputershare.com

Share Transfer System

The Company’s shares are transferred in dematerialised form and

are traded on the stock exchanges compulsorily in the demat

mode. Any request for rematerialisation and / or transfer of shares

in physical mode is also attended within the stipulated time.

Shareholding Pattern

Table 12 lists the distribution schedule of equity shares of the

Company as on 31st March, 2018.

Table 12: Distribution Schedule as on 31st March, 2018

Sl.

No.

Category No. of shareholders % No. of shares %

1. Upto 1 - 5000 293965 99.16 9381077 3.112. 5001 - 10000 644 0.22 925755 0.313. 10001 - 20000 422 0.14 1207332 0.404. 20001 - 30000 206 0.07 1027150 0.345. 30001 - 40000 144 0.05 1008382 0.336. 40001 - 50000 84 0.03 760828 0.257. 50001 - 100000 283 0.09 4012376 1.338. 100001 & above 718 0.24 283757160 93.93 Total 296466 100.00 302080060 100.00

Dematerialisation of Shares and Liquidity

As on 31st March, 2018, 99.999% of the Company's total paid up

equity capital representing 30,20,75,533 equity shares was held

in dematerialised form. The balance 0.001% equity representing

4,527 equity shares was held in physical form. Suzuki Motor

Corporation, the promoter of the Company holds 169,788,440

shares in dematerialised form.

Pursuant to Section 124 of the Companies Act, 2013 read

with Investor Education and Protection Fund (IEPF) Authority

(Accounting, Audit, Transfer and Refund) Rules, 2016, the 9,887

shares in respect of which dividend had not been paid or claimed

for seven consecutive years or more including 600 shares lying

in the “Unclaimed Shares Demat Suspense Account” were

transferred in favour of IEPF Authority.

Commodity Price Risk or Foreign Exchange Risk and Hedging Activities

Please refer to Management Discussion and Analysis.

Outstanding GDRs/ADRs/Warrants or any Convertible Instruments, Conversion date and likely impact on Equity

The Company had no outstanding GDRs / ADRs / warrants or any

convertible instruments.

Details of Public Funding Obtained in the last three years

The Company has not obtained any public funding in the last

three years.

Plant Location

The Company has five plants, two located in Palam Gurugram

Road, Gurugram, Haryana and three located at Manesar Industrial

Town, Gurugram, Haryana.

Adoption of Non-Mandatory Requirements

The Chairman’s office with the required facilities is maintained by the Company at its expense, for use by its Non-Executive Chairman. The Company has appointed separate persons to the post of Chairperson and Managing Director.

Other Disclosures

The Company has complied with the Regulation 17 to 27 and Clauses (b) to (i) of Sub-Regulation (2) of Regulation 46 of the Listing Regulations.

Address for correspondenceInvestors may please contact for queries related to:

I. Shares held in dematerialised formTheir Depository Participant(s)

and/or

Karvy Computershare Private LimitedKarvy Selenium Tower B, Plot 31-32,Gachibowli,Financial District, Nanakramguda, Hyderabad – 500 032Phone No.: 040-67162222Fax No. : 040-23001153Toll Free: 1800-345-4001Mail Id: [email protected] Website: www.karvycomputershare.com

II. Shares Held in physical formKarvy Computershare Private Limited (at the address given above)

or

The Company at the following address:Maruti Suzuki India Limited1, Nelson Mandela Road,Vasant Kunj, New Delhi-110 070Phone No.: (+91)-11-4678 1000Email Id: [email protected]: www.marutisuzuki.com


68

Annexure- ADECLARATION OF THE MANAGING DIRECTOR & CEO

This is to certify that the Company had laid down code of conduct for all the board members and senior management personnel of the

Company and the same is uploaded on its website www.marutisuzuki.com.

Further, certified that the members of the board of directors and senior management personnel have affirmed the compliance with the

code applicable to them during the year ended 31st March, 2018.

Kenichi AyukawaManaging Director & CEO

27th April, 2018

New Delhi

69

To,

The Members of


Independent auditor’s certificate on corporate governance

1. This certificate is issued in accordance with the terms of our

engagement letter reference no. ND/JA/2017/183 dated 11

September, 2017.

2. We, Deloitte Haskins & Sells LLP, Chartered Accountants,

the Statutory Auditors of Maruti Suzuki India Limited (“the

Company”), have examined the compliance of conditions of

Corporate Governance by the Company, for the year ended

on 31 March, 2018, as stipulated in regulations 17 to 27

and clauses (b) to (i) of regulation 46(2) and para C and D of

Schedule V of the SEBI (Listing Obligations and Disclosure

Requirements) Regulations, 2015 (“the Listing Regulations”).

Managements’ Responsibility

3. The compliance of conditions of Corporate Governance is

the responsibility of the Management. This responsibility

includes the design, implementation and maintenance of

internal control and procedures to ensure the compliance

with the conditions of the Corporate Governance stipulated

in the Listing Regulations.


4. Our responsibility is limited to examining the procedures

and implementation thereof, adopted by the Company for

ensuring compliance with the conditions of the Corporate

Governance. It is neither an audit nor an expression of

opinion on the financial statements of the Company.

5. We have examined the books of account and other relevant

records and documents maintained by the Company for

the purposes of providing reasonable assurance on the

compliance with Corporate Governance requirements by the

Company.

6. We have carried out an examination of the relevant records

of the Company in accordance with the Guidance Note

on Certification of Corporate Governance issued by the

Institute of the Chartered Accountants of India (the ICAI), the

Standards on Auditing specified under Section 143(10) of the

Companies Act 2013, in so far as applicable for the purpose

of this certificate and as per the Guidance Note on Reports

or Certificates for Special Purposes issued by the ICAI which

requires that we comply with the ethical requirements of the

Code of Ethics issued by the ICAI.

7. We have complied with the relevant applicable requirements

of the Standard on Quality Control (SQC) 1, Quality Control for

Firms that Perform Audits and Reviews of Historical Financial

Information, and Other Assurance and Related Services

Engagements.

Opinion

8. Based on our examination of the relevant records and

according to the information and explanations provided to us

and the representations provided by the Management, we

certify that the Company has complied with the conditions of

Corporate Governance as stipulated in regulations 17 to 27

and clauses (b) to (i) of regulation 46(2) and para C and D of

Schedule V of the Listing Regulations during the year ended

31 March, 2018.

9. We state that such compliance is neither an assurance as

to the future viability of the Company nor the efficiency or

effectiveness with which the Management has conducted

the affairs of the Company.

For DELOITTE HASKINS & SELLS LLPChartered Accountants

(Firm’s Registration No. 117366W/W-100018)

Jitendra Agarwal Place: Gurugram Partner

Date: 29th May, 2018 (Membership No. 87104)

Auditor's CertificateRegarding Compliance of Conditions of Corporate Governance

REF: ND/JA/2018/385

Statutory Reports | Management Discussion & Analysis

70

Overview

The Indian economy, after a brief setback in the first half of

2017-18, regained its growth momentum and closed the year on

a positive note. Following the introduction of the landmark Goods

and Services Tax (GST) in the second quarter of 2017-18, there

was a short-term impact, and GDP growth fell to below 7% in

the first half of the fiscal. But prompt action by the Government

helped restore normalcy and economic growth accelerated in the

second half of 2017-18. Economic growth was also supported by

a revival in rural demand, pay revision of government employees

(7th Pay Commission), low inflation and low interest rates. The

economy’s resilience in the face of major policy reforms has

been an important factor in boosting investors’ confidence. Inflow

of FDI continued to show growth during 2017-18. Global credit

rating agency, Moody's, upgraded Government of India's local

and foreign currency issuer ratings – the first upgrade in 14 years.

India's GDP Growth (%)

FY'14 FY'15

6.4 8.27.4 7.1 6.7

FY'16 FY'17 FY'18

Source: CSO, Estimates

India’s passenger vehicle market grew at 7.9% in 2017-18, against

9.2% in 2016-17. Growth was not broad based. Around half the

manufacturers were able to post growth. Among the three broad

segments of the industry, the Utility Vehicles segment, which

accounts for about 28% of industry sales, grew by 21%. The other

two segments - passenger cars and vans - grew by 3.3% and 5.8%

respectively. The sub-segment of mini cars continued to show

weakness and declined 2.1% during the year. The top 10 cities

showed weak demand. Non-urban markets saw healthy growth.

Demand for diesel models continued to see weakness, and their

industry share declined marginally from 40.5% to 39.9%.

The Company posted a volume growth of 13.8% in passenger

vehicles in the domestic market (against the industry growth

of 7.9%). Including the Light Commercial Vehicle (LCV), the

Company’s domestic sales growth stood at 14.5%.

With Suzuki Motor Corporation (SMC) taking responsibility for

incremental capacity expansion, the Company was able to

focus on other key success factors. The Company’s new sales

channel, NEXA, showed strong growth and contributed 20% of

the Company’s domestic sales. During the year, the Company

initiated the revamp of the existing sales channel under the brand,

ARENA, to offer customers a superior experience.

Domestic Passenger Vehicle Industry Growth (%)

Source: SIAM

FY'14

(6.1) 7.23.9 9.2 7.9

FY'15 FY'16 FY'17 FY'18

The Company continued to expand its network at a fast pace.

During the year, the Company added 315 sales outlets, including

150 sales outlets of the commercial channel. In addition, 203

service workshops were added to the network. The Company

strengthened its efforts to buy land parcels for sales and service

outlets.

The Company launched 2 new products – the new Dzire and the

new Swift. The Company also introduced face-lifts of S-Cross and

Celerio. For five of the models – Brezza, Baleno, new Dzire, new

Swift and S-Cross – customer orders were higher than planned

and the Company stepped up efforts to improve availability of

these cars.

Industry Petrol Diesel Mix (%)

FY'14

FY'15

FY'16

FY'17

FY'18 60 40

60 40

56 44

48

53

52

47

Source: SIAM

Petrol Diesel

Greater network reach, a superior customer experience and

exciting products enabled the Company to attract more customers

and grow faster than the industry.

The Company ensured smooth transition to the new GST regime

by proactively training business partners and handholding them

during the transition process. The Company and all its partners

were GST compliant as per the timeline.

Management Discussion & Analysis

71

With the rise in commodity prices, the Company undertook major

cost-reduction efforts to minimise the impact on profit margins.

The regulatory environment remains dynamic, notably in the

areas of taxation, safety and emissions. This, coupled with

rising expectations of customers with regard to vehicle styling,

features and technologies, has increased the intensity of R&D

efforts significantly. Scale and speed are critical for success. The

Company’s in-house R&D capability, together with strong support

and commitment of SMC in providing core technology and new

generation technologies, is helping the Company maintain market

leadership.

In February 2017, SMC and Toyota Motor Corporation of Japan

announced that they will explore a business partnership and work

jointly in the areas of environment technology, safety technology,

information technology, and mutual supply of products and

components. This collaboration is likely to benefit the Company

immensely by providing access to new technologies. Also, the

Company is likely to benefit through mutual supply of vehicles

which will help expand its portfolio into new segments.

81.883.2

84.5

75.1

75.9

9.4 10

.5

7.2

5.8

5.8

15.4

13.6

11

.0

11.0

9.7

FY'18

FY'17

FY'16

FY'15

FY'14

25.

0

21.

0

21.

2

21.

0

28.0

72.6

72.271.4

69.0

66.1

5.8

6.0

6.4

6.6

7.6

FY'18

FY'17

FY'16

FY'15

FY'14

Contribution of Indian Passenger Vehicle Sub-segments (%)

Passenger

Cars

Utility

VehiclesVans

Industry MSIL

Source: SIAM


72

Domestic Sales

The Company has a portfolio of 16 models, catering to a broad

array of customer segments.

Passenger Vehicles This was the 6th year in a row when the Company outperformed

the industry.

The Company achieved leadership position across all the three

industry segments - Passenger Cars, Utility Vehicles and Vans. All

the five best-selling models in India were Maruti Suzuki models.

Consumer surveys show that 'style and looks' has emerged

among the main reasons for buying the Company’s product

offerings. This is in addition to the Company’s other competitive

advantages of high value, a vast network and relevant technology.

In the last three years, there is a noticeable shift towards petrol

vehicles, primarily in the compact segment. Within passenger

vehicles, the Company posted a sales growth of 16.8% in the

petrol segment and 7.1% in the diesel segment.

Withdrawal of incentives for hybrids in the GST regime contributed

to the shift in consumer demand towards non-hybrid variants of

Ciaz and Ertiga, two of the Company’s models that offer smart

hybrids.

During the year, the Company continued its efforts to strengthen

its synergy with finance partners, resulting in the highest ever

finance penetration of 80.5%.

A second successive normal monsoon, combined with the

Company’s efforts in the field, helped achieve healthy growth in

non-urban sales.

MSIL Finance Penetration (% of Domestic Sales)

Source: Company

FY'18

FY'17

FY'16

FY'15

FY'14

81

80

77

75

74

Light Commercial VehicleThe Company launched Super Carry in 2016-17 after extensive

research of the LCV market. In the launch year, focus was primarily

on understanding customer requirements better by testing the

product in specific LCV markets. During the year, focus was on

expanding the commercial sales network and improving product

visibility through below-the-line activities. During the year, the

Company was able to sell 10,033 units of Super Carry. The brand

was adjudged “Commercial Vehicle of the Year” at the Apollo-

CV Awards 2018. With a commercial network of 190 outlets in

159 cities, the Company is in a position to expand volumes in this

category.

Network Transformation

Recognising the changes in consumer lifestyles, including the

growing importance of mobile technologies and digitisation, the

Company has undertaken a major transformation of its network

in recent years. The launch of NEXA in 2015 has enabled the

Company to attract new categories of customers. During the

year, the Company undertook an upgrade of the existing channel

under the brand, ARENA. Besides use of digital technology to

serve customers better, the transformation is built on the pillars of

design and experience.

MSIL Sales Network

FY'14 FY'15 FY'16 FY'17 FY'18

2,627

2,312

1,947

Source: Company

Existing Channel Nexa Commercial Channel

127

40

2,121

316

190

2,020

1,820

1,619

1,310

252

The intent is to holistically transform the traditional dealership

format with the new format at scale. A total of 51 ARENA outlets

were added to the network this year. Progressively, existing

showrooms across India will focus on extending the ARENA

experience to customers.

Transforming buying experience of pre-owned carsBesides the revamp of new car sales outlets, the Company

also undertook a major initiative to improve buyer experience

at pre-owned car sales outlets. Online listing of individual cars

with details, spacious showrooms and digital evaluation of

vehicles now offer enhanced customer convenience and better

transparency. During the year, the Company introduced 154

independent True Value outlets, spanning across 109 cities. The

Company will continue to expand the True Value network.

ServiceDuring the year, 203 dealer workshops were added to the

network, the highest ever in a single year. The Company has

3,403 service workshops covering 1,659 cities.

Besides workshops, 'Maruti Mobile Service' and 'Maruti-on-road

service' help meet the vehicle service needs of customers.

73

Maruti-on-Road service on 2-wheelers, an emergency service, is

able to respond faster to service calls of customers in distress and

provide timely assistance.

During the year, the Company introduced NEXA Service

workshops. With its plush workshops, premium lounges equipped

with digital display, use of a mobile app to enhance information

flow to the customer and a dedicated service manager from start

to finish, NEXA Service is the new benchmark for car service in

India.

Parts and Accessories

One of the strategic objectives of the Company is to minimise the

downtime of customer vehicles due to shortage of spare parts.

Besides existing models, the Company provides parts for various

discontinued models. Given the large number of parts and the

growing number of distribution points, managing timely availability

at all locations is complex. The Company has augmented its

forecasting capabilities to achieve optimum inventory levels.

During the year, forecasting tools were developed to predict the

demand for spare parts, resulting in significant reduction in the

number of off-road vehicles.

Exports

During the year, the Company regained the position of being

the largest exporter of passenger cars from India. The Company

continued to expand its network and make systemic improvements

in the processes of sales and service, besides multiple brand

building activities.

MSIL Passenger Car Exports and its Position (Units)

99,832

109,596114,133

108,748

116,960

FY'15 FY'16 FY'17 FY'18FY'14

3rd 2nd 1st

Source: SIAM

The Company exported 126,074 vehicles during the year to over

100 countries. Abrupt change in regulations and trade policies

in certain countries and depreciation of local currency in some

markets impacted demand. Restrictions on retail financing also

made refurbished products attractive in some of the export

markets. The Company overcame these challenges by exploring

alternative markets. Introduction of new Swift and the refreshed

S-Cross and Celerio also enabled the Company to increase

annual export volume by 2.8% with a market share gain in

certain countries.

Realty and Land Acquisition

During the year, the Company made significant progress in

procuring land parcels for sales and service outlets. The Company

worked on acquisition of around 370 locations; these are under

various stages of acquisition. A substantial part of these land

parcels is in the top 10 cities. Going forward, the focus will be on

acquiring land in emerging cities. A large part of acquired land will

be used for setting up smaller service workshops to have a larger

footprint. With significant amount of upfront capital investment

being made by the Company, dealers will be in a stronger position

to respond to customer needs.

Operations

The Company’s state of the art manufacturing facilities in

Haryana are equipped with advanced engineering capabilities to

cater to the production of 16 models with around 600 variants.

Comprehensive benchmarking against global standards is

regularly undertaken to efficiently manufacture quality products

with the help of skilled and motivated workforce. With a strong

product demand across the portfolio and incremental capacity

expansion being done by Suzuki Motor Gujarat, the Company’s

focus was to enhance quality and throughput with productivity

enhancement measures. Against the installed capacity of

~1.56 mn units in Haryana, the Company was able to achieve a

production of ~1.62 mn units. The Company focused on four key

elements:

Enhancing Flexibility – through fresh layout of sub-stationsThe Company’s aim has been to design flexible production lines

to respond quickly to changes in consumer demand across

models and fuel options. During the year, some new models were

introduced and some were discontinued. The shift towards petrol

cars required an increase of 156,593 units in the production of

petrol models.

Improving Efficiency – through technology interventions and shorter set up timesTo optimise capacity, the Company regularly reviews all

bottlenecks in operations. During the year, the Company

undertook several measures including robot path optimisation,

spot re-distribution and process re-balancing to achieve higher

efficiency.

Quality – Fortify and further improve qualityTo realise the target of dispatching zero defect vehicles from its

facilities, the Company regularly revisits processes, improves

them and consistently adheres to them in a disciplined manner.

During the year, appropriate deployment of technology was done

to assist operators during critical checks, thus eliminating certain

in-house defects. Use of fool proofing systems such as pika-pika

and pokayoke, and capturing process parameters for easier fault

detection, are some of the measures to further improve quality.


74

Innovation-driven EcosystemThe Company supports an ecosystem for innovation. Contribution

from employees in quality circles and cost reduction drives

(Sanchaika) results in significant material savings through 3R

(Reduce, Reuse and Recycle) and yield improvements. The

ecosystem also fosters greater collaboration and participation

by the workforce. This is instrumental in creating a better work

environment for manufacturing.

Safety

The Company’s vision on Safety is 'Zero Human Injury, Zero

Fire'. To achieve this vision, emphasis has been on making and

implementing rules, training employees on preventive measures,

and setting up fool-proofing measures across all shop floors and

operations.

Safety is equally emphasised for contractors facilitating the

Company’s operations. During the year, the Company started

a Contractor Assessment System to eliminate risks through

countermeasures and safety skill enhancement of contractors.

Safety extends to suppliers as well. Suppliers’ operations are

being audited and assessed on fire safety, and time bound

countermeasures are being implemented.

A dedicated safety department and a 3-tier committee under

direct supervision of the MD drives the efforts and people’s

commitment to the Company’s safety vision.

Quality

To achieve product quality assurance, the Company focuses on

excellence in in-house production processes while ensuring that

suppliers consistently produce components as per specifications.

Continuing a major initiative taken in the previous year, the

Company worked systematically to drive 'Comprehensive

Excellence' across its supplier base. The Company also started

establishing 'Zero Defect Lines' at the shop floors of its suppliers.

Tools, dies and welding jigs play an important role in achieving

consistent Quality products. The Company ensures that tools, dies

and jigs are well maintained. Mould and die Maintenance Manuals

have been made and are being implemented at all plastic and

sheet-metal suppliers. The results have been positive.

During production ramp up, capacity constraints at the suppliers’

end often lead to quality issues due to lack of sufficient time for

maintenance. The Company has identified that Peak Production

Verification Trial (PPVT) is a useful tool to identify Quality issues

and capacity constraints early in the development phase itself.

So far, PPVT was being conducted for select components. During

the year, the Company has extended PPVT to all components.

Suppliers have been asked to conduct PPVT comprehensively to

avoid Quality issues at production ramp up stage.

Since customer feedback plays an important role in Quality

improvement, all feedbacks reported by dealers are addressed

promptly and countermeasures are taken in the processes and

systems to prevent recurrence of a Quality issue. Further, a

dedicated defect recurrence prevention department has been

created to institutionalise the learning.

The Tier-II suppliers have a critical bearing on overall Quality.

The Company has increased its focus on these suppliers. During

the year, the Company started evaluation and classification of all

Tier-II vendors to ensure that only the best are engaged in future

development. Over 90% Tier-II vendors have been evaluated and

assigned a classification so far. A Tier-II Quality manual has also

been launched.

Continued skill upgradation of manpower engaged in parts

manufacturing is another important area for Qualty. The Company

has been supporting its suppliers for skill upgradation and

education of their shop-floor employees. During the year, over

2,100 employees of suppliers were trained by the Company.

Human Resource

The Company takes pride in acknowledging the performance

of its Human Resource which has always responded with deep

commitment and team spirit to challenge the intense competition

and achieve business growth and market leadership.

The Company has put in place an HR development framework to

ensure employees’ career progression and greater connect with

the Company. This framework rides on multiple programs and

opportunities for individual training, skill up-gradation, congenial

atmosphere for labour-management relationship and equal

opportunities.

A major thrust is laid on constant two-way communication,

free flow of thoughts and mutual growth. Led by the MD, and

enunciated across levels, communication has led to a marked

change in labour-management relations in recent years. In the

face of capacity constraints, all employees worked as a team to

ensure the Company strengthens its leadership position in the

industry. There is a calendar for communication wherein different

levels of employees engage through two way communication.

To engage the families of employees in communication, an in-

house magazine and MD’s messages on special occasions play

an important role.

Source: Company

Trained Supplier Personal

FY'18 2,145

FY'17

FY'16

FY'15

2,009

1,334

1,073

The Company has a structured training, skill development and

higher education program for career enhancement and personal

growth for each employee. For workmen on the shop-floor, the

75

Company provides opportunities to pursue a diploma engineering

course. Those with a diploma engineer qualification can pursue

a degree in engineering. The Company encourages employees

by providing funds, time and better career opportunities to those

pursuing a higher qualification.

To support workmen in their efforts to own a house, the Company

introduced a housing scheme for workmen during the year.

Subsidised loans are being provided. Some other projects are

also under evaluation to extend this benefit to more workmen.

For greater connect and welfare of the families of employees, the

Company has a calendar of events which includes expert career

counseling for employees’ children, a gala family day, plant visits

for family members and attractive rewards for innovators.

An important platform, Maruti Suzuki Training Academy, has been

facilitating identification of skill gaps and preparing people for

future business needs and challenges. This in-house training arm

of the Company, with the most relevant resources and evolving

curriculum in tandem with business needs, is at the forefront of

empowering employees with relevant skills. During the year,

MSTA imparted training of over 1 million man-hours to Company

employees as well as employees of business partners.

Engineering, Research & Development

The Company’s R&D is focused on design and development of

new products to meet growing customer aspirations. At the same

time, it is engaged in ensuring that products are compliant to

changing regulations.

The new designs of Swift and Dzire, with improved features and

better touch and feel, have been well accepted by customers.

These models are built on Suzuki’s latest 5th generation HEARTECT

platform. Use of high tensile steel and efficient design makes the

new platform light weight yet rigid in structure, providing best in

class fuel efficiency, safety and enhanced vehicle performance.

With smart phone connectivity gaining popularity among

customers, the Company has extended the infotainment system

with Apple Carplay and Android Auto to some of the models sold

through the ARENA channel. Earlier, this feature was introduced in

models sold through NEXA channel.

With growing acceptance of Auto Gear Shift (AGS) technology, the

Company now offers it in six models, including Celerio where it

was first launched.

Nine of the Company’s models - S-Cross, Ciaz, Baleno, Ignis,

Vitara Brezza, Ertiga, Dzire, Celerio and Swift - are fully compliant

with the advanced safety regulations. Development work is in

progress to make the remaining models compliant.

On emission norms, development work is in progress to ensure

that all petrol, diesel and CNG models are made compliant to BS-

VI by 2020.

Rising concern regarding air pollution has led to increased policy

focus on promoting Electric Vehicle/Hybrid Electric Vehicle

technologies. The Company has been offering smart hybrid

technology in two of its models (Ciaz and Ertiga). During the year,

Smart Hybrid technology was also introduced in S-Cross.

The Company is now in the process of developing plans for

introducing the next level of hybrid technology and Electric

Vehicle technology with greater support of SMC. The Company

is making all efforts to understand the ecosystem required to

introduce Electric Vehicle technology in India at a mass scale.

This includes a study on consumer usage pattern, charging

infrastructure, safety etc. Also, engineers are sent to SMC, Japan

for training in advanced technologies.

The Company is able to achieve the desired R&D results with

active support of SMC. Besides, the Company continues to invest

in skill up-gradation and building R&D infrastructure at Rohtak.

Many world class facilities at the R&D centre are helping in faster

product development and improved evaluation capability.

Cost Optimisation

In order to reduce the adverse effect of rise in input cost on the

Company’s profit, cost reduction programs continued throughout

the year. Cost reduction is achieved in various ways, including

localisation of direct and indirect imports, value engineering and

value analysis, yield improvement and sharing of scale benefit

with suppliers.

The Company is also working with Indian steel makers for

development of local high tensile and galvanised steel material to

improve indigenisation.

The Company has foreign exchange exposure on account of

import of components. In the last few years, a large portion of this

exposure has been reduced with a focused approach by adopting

various measures like:

• Project based approach for localisation of high technology

parts

• Maximising localisation of parts of new models in order to

realise benefits over a longer timeframe.

• Localisation of critical functional and quality parts with support

of SMC and vendors’ overseas collaborators

• Enhanced procurement from the Japanese suppliers’

transplants in ASEAN region to reduce dependence on Yen.

The Company continued its localisation drive during the

year as well.

During the year, prices of commodities like flat steel, plastics,

aluminum, precious metals, lead and copper firmed up. The

Company tried to limit the adverse impact of commodity price

increase through better negotiation and hedging.


76

Financial Performance

The Company registered Net Sales of ` 781,048 million and Profit after Tax of ` 77,218 million, a growth of 5.06% over the previous year.

Abridged profit and loss account for 2017-18 (` million)

Parameters 2017-18 2016-17 Change

1 Volumes (Nos.)

Domestic 1,653,500 1,444,541 14.5%

Export 126,074 124,062 1.6%

Total 1,779,574 1,568,603 13.4%

2 Gross Sale of Products 803,365 761,408

Vehicles 731,314 696,253

Spare parts/ dies and moulds/ components 72,051 65,155

3 Excise duty 22,317 92,314

4 Net sales (2-3) 781,048 669,094

5 Other operating revenue 16,579 11,254

6 Other income 20,455 23,001

7 Total revenue (4+5+6) 818,082 703,349 16.3%

8 Consumption of raw materials, components and traded goods 548,759 466,280

9 Employee benefit expenses 28,338 23,310

10 Finance Costs 3,457 894

11 Depreciation and amortisation 27,579 26,021

12 Other expenses 99,915 87,241

13 Total expenses 708,048 603,746 17.3%

14 Profit before tax (7-13) 110,034 99,603 10.5%

15 Current tax 33,495 23,356

16 Deferred tax (679) 2,745

17 Profit after tax (14-15-16) 77,218 73,502 5.1%

Table 2: Financial Performance – Ratios (As a Percentage of Net Sales)

Parameters 2017-18 2016-17 Change

Material cost 70.3% 69.7% 0.6

Employee benefit expenses 3.6% 3.5% 0.1

Depreciation and amortisation 3.5% 3.9% (0.4)

Other expenses 12.8% 13.0% (0.2)

Profit before tax 14.1% 14.9% (0.8)

Profit after tax 9.9% 11.0% (1.1)

Table 4: Income from investment of surplus fund (` million)

2017-18 2016-17

Interest on fixed deposits 6 12

Net Gain on sale of investment in debt

mutual funds

964 615

Fair Value gain on investment in debt

mutual funds

18,612 21,403

Total 19,582 22,030

Treasury Operations

The Company has efficiently managed its surplus funds through

careful treasury operations. The guiding principle of the

Company’s treasury investments is safety and prudence. In view

of this, the Company invested its surplus funds in debt schemes of

mutual funds. This has enabled the Company to earn reasonable

and stable returns.

Table 3 lists the investment of surplus funds while Table 4 lists the

return on these surplus funds.

Table 3: Investment of surplus funds (` million)

2017-18 2016-17

Debt Mutual Fund 340,820 276,198

Foreign Exchange Risk Management

The Company is exposed to the risks associated with fluctuations in foreign exchange rates mainly on import of components, raw materials, royalty payments and export of vehicles. The Company has a well-structured exchange risk management policy. The Company manages its exchange risk by using appropriate hedge instruments depending on market conditions and the view on currency.

Internal Controls and Adequacy

The Company has a proper and adequate system of internal control to ensure that all assets are safeguarded and protected against loss from

77

unauthorised use or disposition, and that all transactions are authorised, recorded and reported correctly. The internal control system is designed to ensure that financial and other records are reliable for preparing financial information and other data, and for maintaining accountability of assets. The internal control system is supplemented by an extensive program of internal audits, reviews by management, and documented policies, guidelines and procedures.

Logistics

During the year, the Company took various initiatives to reduce the carbon foot print of its logistics fleet, reduce congestion on roads and enhance customer satisfaction through speedy delivery of vehicles.

Vehicle dispatches through Railways went up. During the year, more rakes and destinations were added. Two new terminals, one each in Hyderabad and Ahmedabad, were customised to handle auto-wagon rakes. In all, six destinations are being served through Railways. During the year, there was a 25% increase in vehicles dispatched by rail. A railway station near the plant of Suzuki Motor Gujarat (SMG) is being customised for rail dispatches from the plant.

Another area of focus is innovation in car carrier design. The objective is to achieve delivery of factory fresh cars at optimum cost and achieve 'zero accidents' as well as 'zero un-scheduled' stops of car carriers en-route due to driver fatigue. Logistic service providers are being encouraged to adopt designs which lead to optimum carrier usage and make the drive comfortable and fatigue-free for the driver.

Car carrier drivers are an important partner in promoting road safety. The Company has set up driving training centres and state of the art simulators to enhance their driving skills. During the year, Driver Safety Campaigns were organised twice; over 10,000 drivers at five locations were covered through these campaigns. For drivers’ health and fitness, regular health check-up camps are also organised.

Information Technology

With rising volumes, the Company’s business operations are becoming more complex. The Company is working towards making the IT system robust to support operational efficiency, quick decision making and ensuring quality customer experience.

Top priority has been accorded to cyber security to insulate the Company and its operations from cyber threats. A cyber-maturity assessment by external experts to identify areas of improvement has been conducted and an action plan devised. Further, Vulnerability Assessment / Penetration Testing (VA/PT) are conducted pro-actively to identify and mitigate risks.

During the year, the Company’s IT Application Division became CMMI – Level 5 (Capability Maturity Model Integration) compliant, the highest benchmark of process performance for software development in IT Industry. Only a few IT Divisions of manufacturing companies have been able to achieve this level.

For optimising production systems at Manesar plant, the Company has implemented an advanced data driven forecasting, planning and scheduling system.

The Company is already using industrial IoT (Internet of Things) and Industry 4.0 concepts and now plans to scale up this initiative to improve efficiency and quality.

The entire CRM system is being modernised to achieve new benchmarks in quality customer experience.

Risk Management

The Company identified various sources which have the potential to disrupt business continuity. Among them, fire is a major one. Besides, mitigation measures for other sources of risk like earthquake, external agitation etc. are also being worked out.

After recent incidents of fire at some of the suppliers, the focus on fire safety has increased significantly. Benchmarking of best practices with SMC Japan was done to identify countermeasures. Various countermeasures have been implemented to prevent fire accidents in the plants.

Audits were conducted by SMC and a third party to assess the efficacy of the fire safety system. Systems and processes were further improved based on audit observations.

The scope of fire safety is not limited to the Company’s operations but also covers suppliers’ operations. The Company has started safety assessment of its suppliers with a special focus on fire safety assessment. Suppliers are re-audited to judge their preparedness and provided guidance on improvements to prevent fire accidents.

On strategic risks, the Company’s top leadership is sensitive about ensuring that complacency does not set into the organisation and among business partners. Thrust is being given to analyze customer complaints with a critical eye and ensure changes in systems and processes. Initiatives like NEXA and ARENA, taken by the Company to enhance customer experience at a time when industry growth is low, reflect the desire to challenge the status-quo and excel, leaving no room for complacency.

Outlook

With 'green shoots' of the investment cycle becoming evident in the economy, coupled with improved global economic outlook, economic growth in 2018-19 is expected to be better than 2017-18. This, in turn, is likely to improve the growth prospects of the auto industry. The Company is striving to post double digit growth for the 5th consecutive year in the domestic market. The 2nd plant in Suzuki Motor Gujarat is expected to be operational in Q4 of 2018-19. Until then, the Company is taking steps to overcome any capacity challenges. Recently there has been enhanced government expectation from the Indian auto industry on electrification of the car powertrain. While there is still uncertainty on issues such as government policy, regulation, charging infrastructure and battery cost viability with respect to petroleum, the Company has planned for launch of hybrid and electric vehicles and is studying the eco-system required to support these technologies. SMC has also supported by entering into a joint venture to produce Lithium-Ion Batteries in India. Electrification will need a considered view across the life cycle of the car starting from sourcing Lithium and other materials to battery manufacturing and charging to safe handling and servicing, training and finally recycling. Careful product planning will have to be done keeping fleet-level CO

2 emission, fuel efficiency improvement,

technology, commercial viability and customer convenience in mind. A lot of technology and guidance will have to be sought from SMC, Japan. The Company is confident of continuing its leadership in the new paradigm.

Disclaimer

Statements in this management discussions and analysis describing the Company's objectives, projections, estimates and expectations are categorised as 'forward-looking statements' within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied. Important developments that could affect the Company's operations include trends in the domestic auto industry, competition, rise in input costs, exchange rate fluctuations, and significant changes in the political and economic environment in India, environmental standards, tax laws, litigation and labor relations.

Statutory Reports | Business Responsibility Report

78

Business Responsibility Report

Section A: General Information about the Company

1. Corporate Identification Number (CIN) of the Company L34103DL1981PLC011375

2. Name of the Company Maruti Suzuki India Limited

3. Registered address 1, Nelson Mandela Road, Vasant Kunj, New Delhi-110070

4. Website www.marutisuzuki.com

5. E-mail Id [email protected]

6. Financial year reported 2017-18

7. Sector(s) that the Company is engaged in (industrial activity code-wise) Automobile

8. List three key products/services that the Company manufactures/ provides (as

in balance sheet)

• Passenger Vehicles (PV)

• Multi Utility Vehicles (MUV)

• Multi-Purpose Vehicles (MPV)

9. Total number of locations where business activity is undertaken by the

Company

Number of international locations (provide details of major 5) Nil

Number of national locations • 2 Manufacturing facilities at Gurugram and Manesar in

Haryana, India

• 1 Research & Development (R&D) facility at Rohtak in Haryana,

India

• 1 Sales & Distribution (S&D) facility at Hansalpur in Gujarat,

India

• 1 Service facility at Naraina, New Delhi, India

• Head Office in New Delhi, India

• Regional Offices, Area Offices and Zonal Offices across India

10. Markets served by the Company - local/ state/national/international Domestic: India

International: Europe, Africa, Asia, Oceania and Latin America

Section B: Financial Details of the Company

1. Paid up capital (` million) 1,510

2. Total turnover (` million) 819,944

3. Total profit after taxes (` million) 77,218

4. Total Corporate Social Responsibility (CSR) spend (` million) 1,250.8

5. Total spending on CSR as percentage of profit after tax (%) 1.62

6. Total spending on CSR as percentage of average net profit of the previous

three years as per Companies Act 2013 (%)

2

7. List of activities in which expenditure in 4 above has been incurred Community development, skill development and road safety

Section C: Other Details

1. Does the Company have any Subsidiary Company/ Companies? Yes

2. Do the Subsidiary Company/Companies participate in the BR initiatives of the

parent company?

If yes, then indicate the number of such Subsidiary Company(s)

No

3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company

does business with, participate in the BR initiatives of the Company? If yes,

then indicate the percentage of such entity/entities?

No

Section D: Business Responsibility (BR) Information

1. Details of Director/Directors responsible for BR (i) Details of the Director/Directors responsible for implementation of the BR policy/policies

DIN Number (if applicable) 02262755

Name Mr. Kenichi Ayukawa

Designation Managing Director & CEO

79

(ii) Details of the BR head

DIN Number (if applicable) NA

Name Mr. Kanwaldeep Singh

Designation Sr. Vice President, Corporate Planning

Telephone number 011-46781123

E-mail id [email protected]

2. Principle-wise (as per NVGs) BR policy/policies

Principle 1 Businesses should conduct and govern themselves with ethics, transparency and accountability

Principle 2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

Principle 3 Businesses should promote the well-being of all employees

Principle 4 Businesses should respect the interests of and be responsive towards all stakeholders, especially those who are

disadvantaged, vulnerable and marginalised

Principle 5 Businesses should respect and promote human rights

Principle 6 Business should respect, protect and make efforts to restore the environment

Principle 7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner

Principle 8 Businesses should support inclusive growth and equitable development

Principle 9 Businesses should engage with and provide value to their customers and consumers in a responsible manner

(i) Details of compliance

Questions P

1

P

2

P

3

P

4

P

5

P

6

P

7

P

8

P

9

Do you have policy/policies for Y Y Y Y N Y N Y Y

Has the policy been formulated in consultation with the relevant stakeholders? Y Y Y Y N Y N Y Y

Does the policy confirm to any national/ international standards? If yes, specify? Y

±

Y

±

Y

±

Y

±

N Y

±

N Y

±

Y

±

Has the policy being approved by the Board? If yes, has it been signed by the MD/owner/

CEO/Board Director?

Y Y Y Y N Y N Y Y

Does the Company have a specified committee of the Board/Director/Official to oversee the

implementation of the policy?

Y N Y Y N Y N Y Y

Indicate the link for the policy to be viewed online? Y

**

Y

*

Y

**

Y

*

N Y

**

N Y

**

Y

*

Has the policy been formally communicated to all relevant internal and external

stakeholders?

Y Y Y Y N Y N Y Y

Does the Company have in-house structure to implement the policy/policies? Y Y Y Y N Y N Y Y

Does the Company have a grievance redressal mechanism related to the policy/policies to

address stakeholders’ grievances related to the policy/ policies?

Y Y Y Y Y

+

Y Y

+

Y Y

Has the Company carried out independent audit/evaluation of the working of this policy by

an internal or external agency?

N N N N N Y N Y Y

± Policies have been formulated over time taking into consideration national environmental & safety norms for vehicles, and international standards

such as Global Reporting Initiative Framework, ISO standards on Quality & Environmental Management Systems, British Standard for Occupational

Health & Safety, and ILO Standards on labour practices

* Policies available on internal portal and are accessible only to employees

** Policies available on Company website - http://www.marutisuzuki.com/code-of-conduct.aspx; http://www.marutisuzuki.com/code-of-conduct.aspx

+ Although standalone policies are currently not in place, grievance redressal mechanism is in place to address stakeholder concerns regarding

human rights and policy advocacy

Statutory Reports | Business Responsibility Report

80

(ii) If answer to the question at serial number 1 against any principle, is ‘No’, please explain why:

Questions P

1

P

2

P

3

P

4

P

5

P

6

P

7

P

8

P

9

The Company has not understood the Principles - - - - - - - - -

The Company is not at a stage where it finds itself in a position to formulate and implement

the policies on specified principles

- - - - - - - - -

The Company does not have financial or manpower resources available for the task - - - - - - - - -

It is planned to be done within next 6 months - - - - - - - - -

It is planned to be done within the next 1 year - - - - - - - - -

Any other reason (please specify) - - - - * - ** - -

* The Company does not have a standalone Human Rights policy. Aspects of human rights, such as child labour, occupational health and safety and

non-discrimination are covered in its various Human Resource policies

** The Company does not have a standalone advocacy policy. For advocacy on policies related to the automobile industry, the Company engages

with industry associations and expert agencies

3. Governance related to BR (i) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance

of the Company.

The Company’s top management along with the Managing Director reviews the Company’s performance on a weekly basis

through Business Review Meetings (BRM) which is a part of ISO 9001:2015 framework and is periodically audited by an

external agency.

(ii) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently

it is published?

The Company has a practice of disclosing its sustainability related performance annually through Sustainability Report.

The Company has started integrating Sustainability Report with the Annual Report since the financial year 2015-16. The

Sustainability Report for the year 2017-18 is therefore a part of Annual Report.

Section E: Principle-wise Performance

National Voluntary Guidelines Principles Mapping with sections in Sustainability Report 2017-18 Page no.

Principle 11. Coverage of ethics, bribery and corruption policy Code of business conduct and ethics 85

2. Details of stakeholder complaints received Code of business conduct and ethics 85

Principle 21. Products or services whose design has incorporated social or

environmental concerns, risks and/or opportunities

Control of substances of concern, Emissions and safety,

Service networks, End of life vehicles

90, 97, 102

2. Resource use per unit of product Raw materials usage and recycling, Water and waste water

management, Energy efficiency

91, 92

3. Procedures in place for sustainable sourcing (including

transportation)

Local sourcing, Control of substances of concern, Logistics

and transport

90, 102

4. Procuring from and capacity building of small and local vendors Comprehensive excellence program, Fire safety

management, Promotion of environment management

systems

90

5. Mechanism to recycle products and waste Raw materials usage and recycling, Water and waste water

management, Waste management

91, 94

Principle 31. Total workforce and categorisation by gender, physical

disability, contract type etc.

Workforce diversity 104

2. Details of employee association(s) recognised by management

and percentage of employees covered by these association(s)

Employee relations 106

3. Complaints on child labour, forced labour, involuntary labour

and sexual harassment received and resolved

Code of business conduct and ethics 85

81

National Voluntary Guidelines Principles Mapping with sections in Sustainability Report 2017-18 Page no.

4. Skill up-gradation and safety training Talent management and development, Workplace health and

safety management

107, 95

Principle 41. Identification and mapping of internal and external

stakeholders

Stakeholder engagement, Collaborating with stakeholders 86, 103

2. Identification and engagement with disadvantaged,

marginalised and vulnerable stakeholders

Communities 108

Principle 51. Coverage of human rights policy Code of business conduct and ethics 85

2. Complaints received and resolved Code of business conduct and ethics 85

Principe 61. Coverage of environmental policy Management approach for environmental performance 88

2. Company’s policy/strategy/initiatives to address global

environmental issues such as climate change; and initiatives on

clean technology, energy efficiency, renewable energy etc.

Management approach for environmental performance,

Responsible procurement, Responsible operations, Product

stewardship

88, 90, 91, 97

3. Identification and assessment of environmental risks Management approach for environmental performance 88

4. Company’s projects related to Clean Development Mechanism Two Clean Development Mechanism projects registered with

the UNFCCC:

1. Shifting a part of vehicle transportation from roadways

to railways with specially designed railway wagons

2. Waste heat recovery from gas turbines by installing

steam turbine generator in Gurugram facility

-

5. Compliance with CPCB/SPCB norms Compliance management 86

Principle 71. Status of membership of any trade and chamber or association Government and industry bodies 108

2. Advocacy through any trade and chamber or association for

advancement or improvement of public good

Future Mobility, Government and industry bodies 101, 108

Principle 81. Details of the Company’s community development initiatives

including impact assessment

Communities 108

2. Mode of undertaking programmes/ projects Management approach for social performance 88

3. Financial contribution towards community development

projects

Communities 108

Principe 91. Consumer cases pending Compliance management 86

2. Cases filed by stakeholders against the Company regarding

unfair trade practices, irresponsible advertising and/or anti-

competitive behaviour and cases resolved

Compliance management 86

3. Display of product information Labelling and information 101

4. Consumer surveys undertaken Customer satisfaction 104

82

Sustainability Report

Report ProfileMaruti Suzuki India Limited has been publishing Sustainability

Report every year to disclose its sustainability performance to

various stakeholders. This is the Company’s 10th Sustainability

Report, which is for the financial year 2017-18. The previous

Sustainability Report was published for the year 2016-17.

This report has been prepared in line with the Global Reporting

Initiative (GRI) Standards, in accordance with the Core option. In

addition, the report is aligned with the ‘Ten Principles of the United

Nations Global Compact’ (UNGC) and the National Voluntary

Guidelines on Social, Environmental and Economic (NVG-SEE)

Responsibilities of Businesses in India issued by the Ministry of

Corporate Affairs, Government of India.

There was no significant change from the previous reporting

period in scope and aspect boundaries. The environmental and

safety performance disclosures in the report cover the Company’s

vehicle manufacturing facilities in India at Gurugram and Manesar,

casting facility at Manesar and Research and Development (R&D)

facility at Rohtak. The employee related performance disclosures

cover the Company’s manufacturing facilities and offices across

India. The disclosures on social development initiatives cover

activities in Haryana, Gujarat and other parts of the country. The

scope and boundary of the report excludes Naraina (New Delhi)

service facility, stockyards, Gujarat sales and distribution facilities

as well as joint ventures and subsidiaries.

The reporting process was guided by the materiality assessment,

which was revalidated this year through discussion with internal

stakeholders. The sustainability topics included in the report

are the ones that are of highest importance for the Company

and its stakeholders. There is a robust process in place for the

collection, analysis and management of data. The Company has

used calculation methodologies conforming to globally accepted

standards. The methodologies, assumptions and restatements

have been clearly stated wherever applicable.

The Company is committed to ensuring that the information

presented to stakeholders through the Sustainability Report is

unbiased, comparable, accurate, reliable and comprehensive.

Therefore, the Sustainability Report has undergone independent

assurance by third-party assurance provider, DNV GL Business

Assurance India Pvt. Ltd. The assurance statement forms a part of

this report.

Company OverviewMaruti Suzuki India Limited is the leading passenger vehicle

manufacturer in India. The Company was established in 1981 as a

joint venture between the Government of India and Suzuki Motor

Corporation (SMC), Japan. It is now SMC’s largest subsidiary

in terms of volume of production and sales. SMC owns 56.21%

equity stake in the Company. It is a public limited company and is

listed on BSE and NSE of India.

Scale of Organisation

The Company’s manufacturing sites are located at Gurugram

and Manesar in Haryana, India, with an installed capacity of

~1.56 million vehicles per year. During the reporting period, the

Company manufactured ~1.62 million vehicles. The Company

achieved its highest ever sales of 1.78 million vehicles, which

includes vehicles manufactured by Suzuki Motor Gujarat. During

the financial year, there were no significant changes in ownership,

structure and size of the Company.

Sustainability Report | Report Profile I Company Overview

Facilities in India

New

DelhiHead Office

Haryana

Manufacturing Sites

• GURUGRAM

• MANESAR

Research and

Development Centre

ROHTAK

GujaratSales &

Distribution Facility

HANSALPUR

83

Offices in India Top five countries for export

Existing channel (ARENA) New channel (NEXA) Figures represent vehicles exported by Maruti Suzuki

Zonal Offices

Regional Offices

Area Offices

12

6

26

19

7

32

19

13

6

IndonesiaSouth AfricaChile

28,4548,76520,011

NepalBolivia

4,8757,104

Sales and service outlets in India

ARENA

2,121

Cities

Outlets

1,735

Commercial

NEXA

316

Cities

Outlets

178

190

Cities

Outlets

159

True Value

1,243

Cities

Outlets

940

Service

3,403

Cities

Outlets

1,659

84

Laying Strong FoundationRobust Corporate Governance

The Company recognises the value of sound corporate

governance in securing the trust of stakeholders. The Company

nurtures a culture that promotes high standards of ethical

behaviour, individual accountability and transparent disclosures

across its business operations. Robust governance practices

have been implemented at all levels of the organisation. The

Board, along with its committees, carries out responsibilities

towards all stakeholders by ensuring transparency, fair play

and independence in decision making. The Company’s Board

comprises 12 members which includes two women Independent

Directors. Further details can be found in the Corporate

Governance Report section (page no. 58) of the Annual Report.

The Company’s senior management along with the Managing

Director reviews the sustainability performance of the Company

periodically.

Commitment to External Principles and Initiatives

Management systems implemented

Management system Adoption year Coverage

OHSAS 18001 2012 Head Office and Gurugram, Manesar and Rohtak facilities

ISO 14001 1999 Gurugram, Manesar and Rohtak facilities

ISO 9001 1995 Gurugram and Manesar facilities

ISO 27001 2006 Head Office, Gurugram and Manesar facilities and Zonal, Regional and Area Offices

Services

Following services are offered to customers in association with the Company’s business partners:

Economic Performance

Direct economic value distributed (in ` million)

Item 2015-16* 2016-17** 2017-18

Employee wages and benefits 19,788 23,310 28,338

Shareholder fund 298,842 364,311 417,573

CSR fund 785 895 1,251

*Figures have been restated due to IND AS adoption

**Figures have been restated to give effect to amalgamation of seven wholly-owned insurance subsidiary companies

Note: Further details of total revenue, total expenses and profits generated can be found in Statement of Profit and Loss under Financial Statements (Standalone)

of the Annual Report

Contribution to employee benefit plan obligation (in ` million)

Item 2015-16 2016-17 2017-18

Leave encashment/compensated absence 2,101 2,540 2,916

Employee gratuity fund 1,967 2,371 2,906

Retirement allowance 58 66 69

Provident fund 11,590 13,938 16,672

Note: Refer Note 2.9 (Employee Benefits) and Note 32 (Employee Benefit Plans) under Financial Statements (Standalone) of the Annual Report

Maruti Genuine

Parts

Maruti Genuine

Accessories

Maruti Suzuki

Auto Card

Maruti Driving

School

Vehicle Servicing Maruti Finance Maruti Insurance True Value

Sustainability Report | Company Overview I Laying Strong Foundation

85

Code of Business Conduct and Ethics

The Company’s Code of Business Conduct and Ethics (COBCE) for

senior management and other employees addresses compliance

with internal standards of business conduct and ethics, as well

as regulatory requirements. The code covers aspects such as

regulatory compliance, work culture, health, safety, environment,

prevention of sexual harassment of women, honesty, integrity and

ethical conduct, insider trading and related party transactions,

among others. All employees undergo mandatory COBCE training

at the time of joining and thereafter through e-learning modules

and classroom sessions.

The COBCE is not applicable to the Company’s subsidiaries,

joint ventures, suppliers and dealers. However, adherence to

applicable regulatory compliances, including but not limited to

prohibition on employment of child labour, forced labour and

prevention of sexual harassment of women at workplace, are

included as contractual requirements for dealers and suppliers.

The Company has a Whistle Blower Policy that encourages

employees to bring instances of unethical behaviour to the

knowledge of the management. The Anti-Sexual Harassment

Policy makes the workplace safe for women and also preserve

and enforce the right of gender equality.

Human rights management is integral to the Company’s overall

approach to responsible business. Though the Company does not

have a standalone policy, aspects of human rights such as child

labour, forced labour, occupational safety and non-discrimination

are covered by various policies applicable to the Company. The

Company promotes respect for human rights among suppliers by

including human rights elements in contractual obligations.

Status of complaints received during 2017-18

Corporate Governance Structure

Nomination &

Remuneration

Committee

Risk

Management

Committee

Managing

Director

CSR

Committee

Stakeholders

Relationship

Committee

Audit

Committee

Audit

Team

Internal,

External and

Cost Auditors

Board of Directors

SHAREHOLDERS

Two complaints were received and both

are under investigation. One complaint

received in 2016-17 was investigated

and closed in this reporting period.

No stakeholder complaint received

regarding human rights.

One complaint received during 2017-18

was investigated and closed while two

others are under investigation. One

complaint received in 2016-17

was investigated and closed in this

reporting period.

Human rights Sexual harassment Whistleblowing

86

Compliance Management

The Company has set up a comprehensive Electronic Legal Compliance Management System, through which it confirms compliance

to all applicable regulations, including those on environment, occupational health and safety, social responsibility and product

responsibility. The system has provisions for early warning, checks and balances, reporting and escalation. The compliance report is

submitted to the Board on a quarterly basis.

Status of compliance during 2017-18

No non-compliance and no significant sanctions (monetary and non-monetary) were imposed on Maruti

Suzuki by the regulatory authorities. All emissions and waste generated by Maruti Suzuki were within

the limits defined by the Pollution Control Board. As on 31st March 2018, satisfactory replies to all show

cause notices received from the Pollution Control Board have been given.

No stakeholder complaints regarding irresponsible advertising were received.

One case pertaining to anti-competitive behaviour filed against 17 automobile companies is pending

before various courts such as Delhi High Court, Madras High Court and Supreme Court of India. The

case was filed before the Competition Commission of India (CCI) under Section 19 of the Competition

Act by Shri Shamsher Kataria ('Informant') on 17th January, 2012, against some car companies (other

than Maruti Suzuki), alleging multiple violations of the provisions of the Competition Act. In the case of

Maruti Suzuki, an interim stay is in operation in the above case, pursuant to the writ petition filed by the

Company before the Delhi High Court.

Stakeholder Engagement

The Company has identified its stakeholders, i.e. organisations and individuals that are impacted by or can impact the Company’s business

operations. Stakeholder engagement is a continuous process and the Company has well-established mechanisms for it. The feedback

received through various channels of engagement helps the Company formulate plans to address stakeholder needs.

Employees and

their families

Customers

Local

communities

Government and

regulatory authorities

Dealers

Suppliers

Shareholders

and investors

Key stakeholders

Environmental laws and regulations

No incidents of non-compliance.Marketing communications

Advertising standards

Competition laws

Sustainability Report | Laying Strong FoundationSustainability Report | Laying Strong Foundation

As on 31st March 2018, 1,252 consumer cases are pending, in various forums.Consumer protection laws

87

Risk Management

The Company understands that effective risk management is critical for meeting strategic objectives and for achieving sustainable

long-term growth. The Company has a risk management process which is overseen by the Risk Management Committee. This

Committee monitors and reviews the risk management plan of the Company as per requirements of the Companies Act, 2013. The risk

identification process is carried out by conducting extensive stakeholder interviews, workshops and surveys. The ownership of each

risk is assigned to the identified risk owners.

Stakeholder group

Engagement activity Engagement

frequency

Employees Managing Director’s communication meeting with departmental heads on business performance and

developments

Quarterly

Divisional communication meetings on business performance and developments Monthly

Managing Director’s meeting with union representatives Monthly

Plant and functional heads’ interactions with workers Monthly

‘Coffee with HR’ to engage employees on HR policies and initiatives Monthly

Employee engagement survey Annual

Stay and exit interviews Ongoing

‘Family Connect’ activities (family meets, factory visits, sports events, child and parental counselling) Ongoing

Suggestion schemes and quality circles Ongoing

Customers ‘Brand Track’ to gauge customers’ perception of corporate and product brands Ongoing

Customer meets and third-party surveys to gauge customers’ satisfaction levels Ongoing

Mega service camps to understand and resolve customers’ concerns Ongoing

Customer care cell for 24x7 customer support Ongoing

Shareholders

and investors

Annual general meeting Annual

Press releases and emails Ongoing

Investor meets, one-to-one meetings and conference calls Ongoing

Suppliers ‘Suppliers’ Club’, a forum for suppliers’ interaction with the Company’s top management Ongoing

Quality Month to enhance quality consciousness amongst suppliers Annual

Value Analysis & Value Engineering (VA-VE) progamme to achieve cost competitiveness jointly with

suppliers

Annual

Vendor Conference Annual

‘Comprehensive Excellence Programme’ to upgrade suppliers’ performance standards Ongoing

Vendor HR Meet to sensitise suppliers’ CEOs on HR topics Ongoing

Dealers Dealer Conference Annual

Guidance on business and financial matters Ongoing

Local community Consultation with local people around manufacturing locations on community development Ongoing

Government

and regulatory

authorities

Participation in committees set up by Society of Indian Automobile Manufacturers (SIAM),

the Government and trade associations on policy and regulations

Ongoing

Dialogue with stakeholders important for Corporate Social Responsibility activities such as ministries/

departments governing skill training, education, road transport and traffic

Ongoing

Focus areas for risk management

Impact on business

continuity due to

natural and man-made

disasters

Sensing evolving

customer preferences

ahead of competition

Impact on business

continuity due to

supply disruptions

Maintaining customer-

centric culture

Strengthening

the competitive

advantage - deep

and wide network

Delivering value for

money better than the

competitors

Acquisition and

retention of talent

Complacency in the

organisation and in

the value chain

Strengthening the

quality culture across

the supply chain

Capturing the

organisational

learning

Good labour

relations for smooth

manufacturing

operations

Security of

infrastructure,

manpower and data

88

Approach towards Sustainability Performance

Management Approach for Economic PerformanceThe Company believes in creating value for all its stakeholders

including shareholders, employees, customers and the society.

The Company’s growth strategy along with disciplined allocation

of capital has led to sustained financial returns. In recent years,

the Company has systematically widened its vehicle portfolio. In

2017-18, the Company maintained its market leadership position.

The Company closely monitors the external environment and

changing consumer needs and responds appropriately with

product innovation and expansion of service network. The

suppliers are also advised to build capacities and capabilities to

meet current and future business requirements. Further, future

plans are made considering long-term interests of the Company

and its stakeholders.

Management Approach for Environmental PerformanceThe Company strongly believes that environment protection

must be a key priority in all its business activities. The Company

is committed to complying with environmental regulations

and strives to improve the environmental performance of its

manufacturing facilities, products, supply chain and dealers. The

Company’s manufacturing operations are based on the ‘Smaller,

Fewer, Lighter, Shorter and Neater’ philosophy of Suzuki Motor

Corporation, and it ensures optimum utilisation of raw materials,

energy and water along with minimisation of emissions and waste.

The Company’s Environment Policy conveys its commitment

towards sustainable usage of natural resources, reducing the

pressure on environment and working collaboratively with

customers, suppliers and the surrounding communities. The

Company has carried out Environmental Impact Assessment (EIA)

during the setting up and expansion of its manufacturing facilities

and has accordingly implemented Environmental Management

Plans. The Company has rolled out Environmental Management

Systems (EMS) at Gurugram, Manesar and Rohtak facilities.

At the product level, the Company continuously focuses on

increasing fuel efficiency and reducing emissions. Significant

investments in research and development have helped the

Company in implementing BS-VI fuel standards and Corporate

Average Fuel Efficiency (CAFE) norms. Innovation in vehicle

platforms enables the Company to offer environment-friendly

products without compromising on performance. The Company

is also committed to reducing raw material usage in cars without

compromising on customer safety and comfort. Other issues

of focus for the Company are restrictions on use of hazardous

substances in vehicles and ensuring recoverability and

recyclability of vehicles.

The Company works closely with suppliers and dealers to ensure

that they adopt environment-friendly practices. Through the

Green Procurement Guidelines (GPG), suppliers are mandated to

avoid the use of Substances of Concern (SoC) in their products

and establish EMS at their facilities.

Management Approach for Social PerformanceThe Company considers that taking care of the people directly or

indirectly impacted by its operations, products and services is its

responsibility.

The Company is driven by its focus on customer delight. To

provide the best value to customers, the Company provides latest

technology, comfort and advanced safety features in its cars.

Sales and service related facilities and systems are constantly

being upgraded to offer maximum customer satisfaction.

The Company constantly strives to provide a conducive work

environment for its employees with long-term career development

opportunities. The Company places significant emphasis on

training and capacity building of employees as well as suppliers and

dealers. Through its policies, the Company promotes the adoption

of the principles of human rights such as equal opportunity, non-

discrimination, freedom of association and elimination of child

labour.

The Company is committed to providing a safe and healthy work

environment for employees, visitors, contractors and vendors.

OHSAS 18001 has been implemented at Head Office and

Gurugram, Manesar and Rohtak facilities. In recent years, the

Company has strengthened its oversight towards achieving its

stated goal of ‘Zero Accident’. New safety programmes have

been launched and are being extended to the Company’s offices,

suppliers and dealers.

Corporate citizenship is an integral part of the Company’s culture

and there is a long-term commitment to make a positive and

meaningful impact through social development. Investments are

being made in social initiatives that are targeted at community

development, skill improvement and road safety, and are aligned

with the broader national development goals. The initiatives are

being implemented through the Maruti Suzuki Foundation as

per the Company’s Corporate Social Responsibility (CSR) Policy

under the guidance of the Board.

Sustainability Report | Laying Strong Foundation

89

Materiality Assessment

The Company has mapped sustainability topics that are material to the Company and its stakeholders. During the reporting period, the

Company conducted structured stakeholder consultations with management personnel, including the top management to assess the

relevance, validity and the significance of the material issues.

The boundaries for the material topics includes facilities that fall under the direct control of the Company. Subsidiaries, joint ventures and

associate companies on which the Company has no operational control have been excluded from the report's scope. The Company has

identified the reporting boundary for each topic.

Boundaries for material topics

M Maruti Suzuki S Suppliers D Dealers

Energy

Effluents

& waste

Customer health

& safety

M D

Procurement

practices

M S

Water

M

Child labour

M

Forced or

compulsory

labour

M

M

Occupational

health &

safety

M

M

Local

communities

M

Economic

performance

M

Materials

M

Emissions

M

Products &

services

M

Labour-

management

relations

M D

Freedom of

association &

collective

bargaining

M

Training &

education

M S D

Employment

M S D

Marketing

communications

M S D

Compliance

M S D

Significant material topics

90

Responsible ProcurementThe Company has a large supply chain network in India comprising

444 Tier-I suppliers with 564 plants. The Tier-I suppliers

provide raw materials (e.g., steel, aluminium), auto components

and consumables. Major value generation occurs at the

supplier’s side.

The Company has been driving sustainability practices in the

supply chain through guidelines, handholding and capacity

building. This is done to minimise supply risks, prepare suppliers

for future business requirements and reduce the environmental

and social footprint of products. The Company also encourages

Tier-I suppliers to work closely with Tier-II suppliers to improve

their sustainability performance. An outcome of the Company’s

deep engagement with the supply chain is compliance with the

European Union’s End of Life Vehicles Directive norms.

Comprehensive Excellence Programme

The Company has started a Comprehensive Excellence

Programme (CEP) for its Tier-I suppliers. The programme intends

to assess supplier performance on aspects such as manufacturing

process control, risk management, safety management, human

resource development and Tier-II management. Based on the

assessment, suppliers agree on improvement plans to reach

minimum acceptable standards. The Company engages in

handholding and capacity building of suppliers through Maruti

Centre of Excellence. Awards are given to suppliers at the annual

Vendor Conference for achieving performance excellence.

Yield Improvement

Yield improvement activities are carried out to conserve key raw

materials used by suppliers in manufacturing such as sheet metal,

plastics, rubber, fabrics and electrical and casting items. The

suppliers are recognised for performance in areas of quality, cost,

delivery, development and management (QCDDM). Through yield

improvement, a saving of ` 216.78 million has been achieved

in 2017-18.

Local Sourcing

Local sourcing reduces environmental impact from logistics,

saves transportation time and boosts local economic growth. As

on 31st March 2018, 88% of the Company's Tier-I supplier plants

were localised, i.e. located within 100 km of the manufacturing

facilities.

Control of Substances of Concern

Guided by Suzuki Engineering Standards, the Company has

developed Green Procurement Guidelines (GPG) for auto

component suppliers. As on 31st March 2018, all Tier-I suppliers

have signed the GPG.

A mandatory requirement for the suppliers is the avoidance of the use

of Substances of Concern (SOCs) such as lead, cadmium, mercury,

hexavalent chromium and asbestos in the manufacturing process

and the products. Suppliers demonstrate compliance by submission

of declarations, test reports and part-wise composition details via an

SOC control tool called International Material Data System (IMDS).

Promotion of Environmental Management Systems

The Company’s Green Procurement Guidelines require suppliers

to establish an Environmental Management System (EMS) at their

facilities. The Company is actively handholding its suppliers for

EMS implementation and also encourages them to promote EMS

adoption among the Tier-II suppliers.

Fire Safety Management

The Company has initiated fire risk assessment of all Tier-I supplier

plants to support them in reducing their fire safety risks. The fire

risk assessment is based on three interventions: management

focus on fire risk elimination (proactive measures), quick detection

and suppression (for small fires) and emergency preparedness

(for major fires). The assessment exercise began in 2016 and all

suppliers were audited and reverified for countermeasures. The

Company is also focusing on sustaining the countermeasures by

suppliers and extending a similar exercise to the Tier-II suppliers.

ISO 14001 certification status of supplier plants

352 400 436 472

FY'15 FY'16 FY'17 FY'18

Fire safety training extended to suppliers

Tier-II Supplier Management

The Company is working directly with Tier-II suppliers for

improving quality in production. Training and capacity building

of Tier-II suppliers is also coordinated through Maruti Centre of

Excellence. Efforts by the Company to improve process control

and material handling practices among the small-scale plating

suppliers have led to the discontinuation of certain polluting

supplier plants and has facilitated the setting up of an alternative

supplier with better environmental and social practices.

Sustainability Report | Responsible Procurement I Responsible Operations

91

Responsible OperationsThe Company considers environmental, health and safety

performance an important pillar of success. Driven by its policies,

the Company has implemented management systems based on

ISO 14001 and OHSAS 18001 at its facilities and is also working

collaboratively with its customers, suppliers, and the neighbouring

communities to reduce its environmental and social footprint.

Raw Materials Usage and Recycling

Based on the ‘Smaller, Fewer, Lighter, Shorter and Neater’

philosophy of Suzuki Motor Corporation, the Company strives to

ensure optimum utilisation of raw materials along with minimisation

of waste throughout the vehicle life-cycle.

The Company’s efforts to reduce material usage begin at the

product design and development stage. For example, the 'One

Gram One Component' programme aims to reduce the weight

of the manufactured vehicles and material consumption. Yield

improvement programmes are carried out at supplier plants.

In manufacturing, the Company’s culture of carrying out

continuous shop floor improvements (Kaizens) help in resource

conservation. The Company ensures that scrap generated

from its manufacturing processes is recycled by suppliers and

other recycling vendors. Aluminium and trim scrap are recycled

into ingots and steel waste is transformed into smaller sheet

metal parts.

Details of raw materials and components consumed are given in

Note 48 (page no. 191) under Financial Statements (Standalone)

of the Annual Report. During the reporting period, 3,577 MT

aluminium scrap, 2,370 MT steel scrap and 19,358 MT trim scrap

were sent to suppliers for recycling.

Water and Waste Water Management

The Company recognises the global and regional challenges

with freshwater availability. The Company is constantly improving

management practices and adopting technologies to reduce

consumption of fresh water by maximising the use of recycled

water. In recent years, the Company has significantly reduced

consumption of ground water, which was only 0.5% of the total

fresh water consumption in 2017-18. The major source of

surface water is canal water. Additionally, rainwater harvesting

systems have been built within the facilities to augment water

conservation efforts.

TO CONSERVE GROUNDWATER RESOURCES, ONLY

0.5% OF FRESH WATER DEMAND OF MANUFACTURING

FACILITIES IS MET BY GROUNDWATER

Fresh water consumption by source

(m3) (m3)

21,747

13,945

10,026

FY'16 FY'16

FY'17 FY'17

FY'18 FY'18

G r o u n d w a t e r S u r f a c e w a t e r

10,026 m3 2,218,985 m3

2,385,994

2,312,764

2,218,985

92

The Company recycles the entire volume of industrial and

domestic effluents through effluent treatment plants (ETP) and

sewage treatment plants (STP) installed at the facilities. Around

73% of the recycled water is used in the manufacturing process,

while the remaining 27% is used for horticultural purposes. In

2017-18, the volume of waste water recycled was approximately

60% of the total water demand (fresh water plus treated water)

of the facilities. There was no discharge of treated waste water

outside facility premises. Efforts towards achieving maximum

waste water recycling have enabled the Company to reduce fresh

water consumption and water intensity continuously over the past

three years.

The key water conservation initiatives undertaken in 2017-18 are:

• Installation of tertiary reverse osmosis unit at Manesar casting

facility to improve recovery of industrial water from recycled

water

• Installation of condensate recovery system for recovery of

the condensate generated from process steam distribution

network at Gurugram facility

• Use of treated water from Effluent Treatment Plant in place of

fresh water for backwashing ultra-filtration units at Manesar

facility

• Installation of auxiliary compact compressor for utilisation of

vent steam from low pressure boiler cum de-aerator for use in

process at Gurugram facility

• Use of recycled water instead of freshwater to clean rooftop

solar panels at Gurugram facility

Water intensity (m3 per vehicle manufactured)

1.68 1.48 1.38

FY'16 FY'17 FY'18

Tertiary RO unit installed at Manesar

Energy Efficiency

The Company depends on cleaner and renewable sources of

energy which form a major share (95%) of its total energy use.

The energy requirement at the manufacturing facilities is met by

natural gas-based captive power generation, supplemented by

grid power.

Sustainability Report | Responsible Operations

93

Energy consumption by type (GJ)

Direct/ indirect energy (GJ) Source 2015-16* 2016-17* 2017-18

Direct energy Natural gas 6,116,355 6,491,925 6,952,703

Diesel (HSD) 84,625 187,509 181,036

LPG & Propane* 20,715 22,959 28,425

Gasoline 29,230 30,916 26,821

Solar 4,924 4,797 4,706

Indirect energy Grid electricity 126,100 142,401 147,262

Total 6,381,949 6,880,507 7,340,953

* Energy consumption data for the years 2015-16 and 2016-17 restated based on IPCC 2006 Guidelines for National Greenhouse Gas Inventories and fuel

density values of Petroleum Association of Japan and Japan LP Gas Association, to align with our parent SMC’s calculation methodologies

Energy intensity (GJ per vehicle manufactured)

4.48 4.37 4.34

FY'16 FY'17 FY'18

In 2017-18, energy efficiency initiatives undertaken at the

manufacturing facilities include:

• Installation of intelligent flow controller for optimising pressure

fluctuation range from 17 psi to 1 psi at Manesar facility;

• Installation of energy efficient condenser for air-drier and

Variable Frequency Drive (VFD) in compressor plant at

Gurugram facility;

• Provision of energy efficient equipment such as submersible

mixer, UV system and twin lobe blowers in water treatment

plants at multiple facilities;

• Addition of solar plant capacity by installing solar rooftop

plants at Manesar casting facility (1x10 kW) and Rohtak facility

(3x14.5 kW) for providing LED street lighting; and

• Installation of variable refrigerant flow air-conditioners at Rohtak

facility.

Capital investment in 2017-18 towards energy conservation

mechanisms and equipment is mentioned in Annexure - D (page

no. 49) to the Board's Report in the Annual Report.

In 2017-18, energy was consumed for manufacturing of engine and

other auto parts supplied to Suzuki Motor Gujarat and Suzuki India

Motorcycles Pvt. Ltd. To maintain comparability of data, energy

consumption and corresponding GHG emissions for the above

activities has been discounted from absolute energy consumption

and GHG emissions for this year’s intensity calculations. As a

result of energy efficiency initiatives, the Company managed to

marginally decrease its energy intensity compared to last year.

Emissions Reduction

The Company’s current practice of relying on cleaner natural gas instead of conventional fuels to meet the energy requirements of its

facilities helps reduce emissions. Further, the Company is continuously exploring opportunities to reduce emissions from the facilities

through energy efficiency measures.

Though absolute Scope 1 and Scope 2 greenhouse gas (GHG) emissions from manufacturing facilities have increased in the reporting

period, the Company has been able to maintain the GHG intensity levels. This can be attributed to the various energy saving measures

implemented at the facilities.

Percentage energy consumption by type (%)

Energy from cleaner

sources (natural gas, solar)

Energy from other sources

(grid, diesel, gasoline)

5

95

94

Waste Management

Waste management is an important element in the Company’s

environmental management system. The Company diligently

follows the 3R principle of waste management wherein handling,

storage and disposal is carried out after proper segregation

according to the waste type. Efforts towards maximum waste

recycling and co-processing has ensured that no waste is

disposed to landfill.

GHG emissions by type*

The Company has been gradually reducing its inventory of R-22,

an Ozone Depleting Substance (ODS) currently contained in

condensers, chillers and air-conditioning units. The Company intends

to gradually phase out R-22 and procure equipment with only non-

ODS refrigerant. During the reporting period, there was a reduction

of 16% in total ODS inventory as compared to previous year.

With regard to air emission reduction, all stacks attached to

combustion units are of adequate height for effective pollutant

dispersion. Periodic monitoring of flue gas is carried out and air

emissions are meeting the levels stipulated by the regulatory bodies.

GHG intensity (tCO2e per vehicle manufactured)

0.268 0.263 0.261

FY'16 FY'17 FY'18

ODS (R-22) inventory (tons of refrigeration)

4166 3625 3043

FY'16 FY'17 FY'18

*Scope 1 and Scope 2 emissions for 2017-18 have been calculated on the basis of the IPCC 2006 Guidelines for National Greenhouse Gas Inventories and User

Guide (Version 12.0) of Central Electricity Authority (Ministry of Power, Government of India)

(tCO2e)

352,731

381,683

407,114

FY'16

FY'17

FY'18

D i r e c t ( S c o p e 1 ) e m i s s i o n s

407,114 tCO2e

(tCO2e)

FY'16

FY'17

FY'18

28,718

32,430

33,537

I n d i r e c t ( S C O P E 2 ) e m i s s i o n s

33,537 tCO2e

Sustainability Report | Responsible Operations

95

(MT)

FY'16

FY'17

FY'18

2,881

3,462

3,793

Workplace Health and Safety

With the zero-accident vision comprising zero human injury

and zero fire, the Company has developed a robust three-tier

safety governance structure to ensure safe work conditions for

employees and contractors at the manufacturing facilities and

offices. The governance structure comprises safety committees

at central, vertical and divisional levels. The committees are

facilitated by a dedicated safety division headed by a senior official

directly reporting to the Managing Director. In 2017-18, three new

vertical-level committees, namely Marketing, sales and service,

Logistics and Head Office were added to the existing seven, thus

covering representation of all verticals in the Company.

Safety committees

Central level Meets once in

6 months

• Formulates policies

• Takes strategic decisions

• Reviews safety performance

Vertical level Meets once in

4 months

• Provides adequate resources

and support

• Reviews performance

Divisional level Meets once in

2 months

• Implements safety systems

A major portion of the hazardous waste (comprising process sludge, ETP sludge, etc.) is sent to the cement industry for co-processing

and leads to conversion of the waste to resource. The remaining portion of the hazardous waste (e.g., used oil, contaminated barrels

and cloth) is sent to authorised recyclers.

Waste by disposal method

H a z a r d o u s w a s t e s e n t t o

a u t h o r i s e d r e c y c l e r s

3,793 MT

(MT)

12,153

11,639

12,655

FY'16

FY'17

FY'18

H a z a r d o u s w a s t e s e n t t o c e m e n t

i n d u s t r y f o r c o - p r o c e s s i n g

12,655 MT

(MT)

135,411

152,618

166,838

FY'16

FY'17

FY'18

N o n - h a z a r d o u s w a s t e s e n t

f o r r e c y c l i n g

166,838 MT

96

Injury and injury rate

8 3 5

FY'16 FY'17 FY'18

0.010

Injuries (nos.) Injury rate (per100 employees)

The Apex Safety Committee set up for compliance with the

Factories Act, 1948 (India) has equal representation of shop

floor workers and the management. The committees ensure joint

worker-management participation for reviewing and improving

the safety performance of the Company.

Every employee is made aware of their responsibility to follow safe

practices at work. Safety drills and training sessions are conducted

on regular basis on topics such as hazardous situations and proper

use of personal protective equipment. New employees undergo

safety training during the induction process. Regular employees

undergo periodic safety trainings that are organised based on the

annual safety calendar. The Company has also set up Safety Labs

to give trainees first-hand experience of working at the shop-

floors and also learn about the safety procedures. Safety trainings

are being extended to dealers and suppliers.

The Company has developed an environment friendly low-

cost fire extinguisher that uses water instead of chemical. This

extinguisher can be easily refuelled in-house and does not require

clean up after use/test. This innovation will help provide hands-on

fire extinguisher training to 100% of the Company's employees.

As a practice, the Company conducts planned safety audits,

safety campaigns and theme-based improvement programmes to

enhance the safety culture among employees.

The Company has a robust system for tracking incidents under

various categories such as first aid cases and small, minor,

There were two reportable accidents in 2017-18. One fatal

accident involving a contractual employee amounted to 6,000

person-days lost. The other accident involving three regular and

two contractual employees amounted to 35 person-days lost.

The unfortunate fatal accident occurred at one of the Company’s

manufacturing facility premises when a truck coming from a

supplier plant lost control and collided with the walkway structure

and the driver lost his life.

The Company conducts a detailed investigation after the

occurrence of any minor/major accident. After investigating the

collision incident, the Company took comprehensive corrective

major and severe incidents. The monitoring of incidents is in

conformance with the Factories Act and industry good practices.

Recently, the Company also started tracking near misses to

proactively prevent occurrence of incidents. The Company also

carries out periodic employee health check-ups. There were no

identified occupational diseases among employees.

Accident and lost days rate

55.14 62.74 69.51

FY'16 FY'17 FY'18

18.9

41.4

0.0394

0.016

0.031

THE COMPANY HAS STARTED THE ZERO SAI CAMPAIGN

(ZERO ACCIDENT DRIVE) THROUGH SAFETY CIRCLE

COMPETITIONS CONDUCTED BETWEEN TEAMS OF

EMPLOYEES FROM VARIOUS VERTICALS. SAFETY CIRCLE

IDENTIFIES WORK RELATED HAZARDS AND ACTION

PLANS FOR MITIGATION. THE GRAND WINNER HAS THE

OPPORTUNITY TO PARTICIPATE IN GLOBAL ZERO SAI

CAMPAIGN AT SMC.

Person-hours worked (million hrs)

Lost days rate (per 100 employees)

measures including provision of pillars at corners of all walkways

to warn truck drivers, and installed reflective tapes on walkways

for better visibility at night. In addition, guidelines on safe driving

were communicated to the drivers through the suppliers and

violations are being reported to the top management of suppliers.

After any accident investigation, rules and procedures

are formulated to ensure the incident is not repeated

and they are horizontally deployed in all manufacturing

facilities. During the reporting period, eight new rules were

developed and communicated across the organisation.

These simple safety rules (DOs and DON'Ts) bring more clarity

Sustainability Report | Responsible Operations I Product Stewardship

97

THE COMPANY HAS TRANSFORMED ITSELF IN

RECENT YEARS AND MOVED TO THE NEXT LEVEL OF

EXCELLENCE IN PRODUCT DESIGN, TECHNOLOGY,

NETWORK APPEAL AND APPROACH TO CUSTOMERS.

THIS EVOLUTION IS A JOURNEY, AND THROUGH

TRANSFORMOTION, THE COMPANY STRIVES TO

DELIVER DESIGNS, TECHNOLOGY AND EXPERIENCES

THAT DELIGHT CUSTOMERS.

and understanding on safe working, and have been formulated in pictorial versions in both Hindi and English. The rules cover confined

space entry, forklift operation, moving bolster (press operation), Lockout-tagout (LOTO), machine guarding, chemical safety and

equipment authentication.

PRODUCT STEWARDSHIPCustomer comfort and safety and reduction of the environmental

footprint are key topics relevant to the Company’s business. The

Company has been a pioneer in making fuel-efficient cars. The

Company is also committed to providing advanced safety systems

and comfort features, avoiding use of potentially harmful materials

and providing adequate product information to customers.

The Company believes in making continuous technology

improvements that lead to superior performance at affordable

prices. The Company is also innovating to leapfrog into BS-VI

compliant engines and electric mobility. The Company’s product

stewardship extends beyond product design and development

stages into sales and service.

Emissions and Safety

The Company has been working on developing and upgrading

models to meet safety regulations related to crash protection

(offset frontal, full frontal, side impact, pedestrian), driver and co-

driver safety belt reminder, driver airbag, speed alert systems,

etc. Nine of the Company’s popular models (S-Cross, Ciaz, Ertiga,

Brezza, Baleno, new Dzire, new Swift, Ignis and Celerio) have been

successfully tested and certified as compliant to offset frontal, side

Golden Peacock Award 2017 for ‘Maintaining the highest

standards in occupational health and safety in automobile

category’ from Institute of Directors

Greentech Safety Platinum Award 2017 for ‘Excellence in

occupational health and safety in automobile category’

from Greentech Foundation

impact and pedestrian crash norms. The rest of the models will be

compliant to the crash norms ahead of the regulatory timelines.

The Government of India has announced phase-wise

implementation of Corporate Average Fuel Efficiency (CAFÉ)

norms. Phase-1 of the norms has been in place since April 2017

and Phase-2 will start from April 2022. The Company is currently

meeting Phase-1 norms and gearing up to meet Phase-2 norms

by adopting new and advanced technologies.

98

New fifth generation lightweight vehicle platform called HEARTECT developed, which provides

advanced passenger safety and increased fuel efficiency leading to lower emissions. The new

Dzire and Swift are built on this platform.

Improvement in engine technology such as higher compression ratio, has improved thermal

efficiency of the engine, which, in turn, has made vehicles more fuel-efficient.

Smart hybrid technology introduced in S-Cross, resulting in the technology being available in all

higher end models of the Company. The Smart Hybrid technology has start-stop arrangement,

electric regenerative braking system and an electric motor assist. These work in conjunction with

the engine to drive the vehicle, while optimising the fuel consumption.

Advanced technology for weight reduction made the new Dzire petrol variant approximately 85 kg

lighter and the diesel variant approximately 95 kg lighter than the outgoing Dzire.

Introduction of advanced Auto Gear Shift (AGS) technology in CelerioX, Swift and Dzire for

optimum fuel efficiency and ease of driving.

Full vehicle virtual validation techniques for process and design efficiency which help to reduce

physical testing of aerodynamics, crash worthiness, etc.

Twin CNG cylinder system introduced in Super Carry.

Introduced speed limiting system in the taxi segment.

Technological advancements

Sustainability Report | Product Stewardship

99

CO2 reductions from new product launches in 2017-18 (compared to outgoing models)

Petrol CO2 (g/km)

Petrol CO2 (g/km)

Diesel CO2 (g/km)

Diesel CO2 (g/km)

113.74

116.24

99.60

105.09

107.79

107.79

93.25

93.25

Diesel CO2 (g/km)

111.98

105.51

D Z I R E ( O L D )

S - C R O S S ( O L D )

S W I F T ( O L D )

D Z I R E ( N E W )

S - C R O S S ( N E W )

S W I F T ( N E W )

Petrol

Petrol

Diesel

7.3%

5.2%

Diesel

11.3%

Diesel

5.8%

TechnologyCO2 reductions

Vehicle calibration

Smart Hybrid

technology

Weight reduction

HEARTECT

platform

Engine friction

reduction

Dzire (New) Dzire (Old)

Swift (New) Swift (Old)

S-Cross (New) S-Cross (Old)

6.4%

100

Capability Development

Starting its journey with indigenisation and product support, the

Company progressed from face-lift and co-design to in-house

design and development (domestic and global). In line with the

Government’s agenda, the Company is now evolving from ‘Make in

India’ to ‘Design in India’. To meet this objective, the Company has

enhanced its research and development capabilities by investing

in facilities, technology innovations and human resources. Capital

Investment in Research and Development (R&D) in 2017-18 is

mentioned in Annexure - D (page no. 52) to the Board's Report in

the Annual Report.

Product innovation at the Company is supported by the R&D

facility at Rohtak that is equipped with state-of-the-art laboratories

for vehicle design, development, testing and evaluation. Test

tracks that replicate real-life terrains have been laid. In 2017-18,

new facilities for safety, weight reduction and emissions reduction

were set up.

Cumulative tCO2

savings with Hybrids

Cumulative tCO2

savings with LPG/CNG

Cumulative sales (nos)

Cumulative CO2 avoidance from usage of alternate fuel vehicles (tonnes)

FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18

521,656

2,827

671,034

25,722

393,325

285,594

197,087

127,525

78,95649,90623,405

759,767

70,600

Notes:

Vehicle running data used for the calculation is captured from service data

Cumulative sales are considered from base year 2005-06

Average vehicle life considered to be of 10 years for calculation of cumulative saving for CO2

Emission laboratories for BS-VI development for gasoline and diesel

Weight reduction test facilities including:

• Structural integrity validation in crash test facility: Design is validated for light-weight structure through full frontal,

offset, side and rear impact test to ensure compliance with safety norms

• Structural reliability validation in durability test facility: Simulation of road loads in lab environment and durability

performance for light-weight structures

• Structural rigidity performances in Noise, Vibration and Harshness (NVH) test facility: Structure rigidity and frequency

response mapping and transfer path analysis to understand noise/vibration probable paths

Tyre rolling resistance test facility to measure rolling resistance force of a tyre at different loads

and speeds enabling development of fuel efficient tyres

Transmission efficiency test facility for testing new oil grades to reduce friction loss in the

transmissions and generate simulation data for fuel consumption and performance

Airbag test facility for vehicle-level testing of passenger airbag and curtain airbag

Weig

Facilities at Rohtak R&D

Sustainability Report | Product Stewardship

382,258

502,218

604,210

437,382

763,351

922,585

322,347

260,100

219,004

167,920

101

Customer Comfort

The trendy and youthful designs of the Company’s models

are complemented with comfort features for superior in-car

experience. Notable comfort features introduced recently in

vehicles include:

• Wider fifth generation platform and efficient layout offering

roomier cabin and increased boot space in new Dzire and Swift

• LED projector headlamp and LED daytime running lamps in

Dzire, Swift and S-cross face-lift

• Android Auto extended to Ciaz, Baleno, Ertiga, S-cross and

Vitara Brezza

• New touchscreen infotainment system with Apple CarPlay/

Android Auto, mirror link and smartphone connectivity in Swift

and Dzire

• Addition of rear AC vents to improve the overall rear seat

comfort in Dzire

Future Mobility

The Company is working on a portfolio of xEV technologies

to accelerate electrification of powertrains in India. Hybrid

technology can substantially reduce emissions and fuel

consumption for the future automobile market not addressed by

EVs. After the successful introduction of mild hybrid technology

in India, the Company is now working on a strong hybrid vehicle

based on the Suzuki Hybrid System. This system was showcased

at Auto Expo 2018. A step-up from the current generation mild

hybrid, the Suzuki Hybrid System will use a combination of

conventional engine and electric motor to power the wheels,

drawing energy from petroleum fuels and a Li-ion battery. It will

perform various functions such as idle stop, torque assist and

regenerative braking.

The Company is committed to launching an electric vehicle in

India in 2020 and is gearing up for the challenge through R&D

and strategic partnerships. At Auto Expo 2018, the Company also

unveiled the ‘e-Survivor’ concept, which reflects the commitment

of the Company towards electric mobility in India.

The Company’s parent, SMC, has entered into a partnership with

Toyota Motor Corporation, Japan, to jointly work in the areas of

environment, safety and information technology as well as mutual

supply of product and components. SMC has also entered into a

joint venture with Toshiba Corporation and Denso to produce Li-ion

batteries in India. These developments will support the Company’s

future business plans, including the venture into hybrid and electric

mobility. In addition, the Company is working with the Government

of India, SIAM and other partners on electric mobility.

Labelling and Information

An Owner’s Manual and Service Booklet is provided to every

customer on purchase of a vehicle. The booklet contains

information related to safety, operation and maintenance of the

vehicle. Critical information on product usage (e.g., AC gas, tyre

Award from Indian Patent office, Ministry of Commerce

and Industry, Government of India for:

• Top public/private limited company for patents

& commercialisation in India (foreign)

• Top Indian company/organisation for designs

e-Survivor concept

• LADDER FRAME AND LIGHTWEIGHT BODY PROVIDING

OUTSTANDING DRIVABILITY AND DURABILITY ON

RUGGED ROADS

• AUTONOMOUS AND MANUAL MODE DRIVING

CAPABILITY

• SUPPORTS SAFE, FUN DRIVING THAT SUITS VARIED

ROAD CONDITIONS AND DRIVER SKILLS

• NAVIGATION SYSTEMS AND WIDE MONITOR

DISPLAYING ONLINE INFORMATION AND IMAGES

(ON TOPOGRAPHY, TRAFFIC, WEATHER, ETC.)

FROM VEHICLES CAMERAS

Internal and external trainings have played an important role

in capability development of R&D engineers. In 2017-18, new

training modules on upcoming Electric Vehicle (EV) projects such

as high voltage safety, advanced software training and hands-on

creative training, were introduced. More than 160 engineers were

trained at SMC, Japan on product development and technology

projects. The Company filed 80 patents and three were granted.

102

pressure, brake fluid) is displayed on labels of the products for

information and educational purposes.

Logistics and Transport

The Company has been working on reducing carbon emissions

generated from freight transport involved in the supply of materials

to its facilities and the delivery of vehicles to dealers. Some of the

key initiatives include:

• Localisation of suppliers (currently 88% of Tier-I supplier plants

are located within 100 km radius of manufacturing facilities)

• Multimodal dispatch, route rationalisation and load optimisation

• Exploring options such as transportation by inland waterways

while systematically increasing the share of rail transport

Service Networks

The Company extends its responsibility of being a sustainable

organisation beyond its own facilities to the dealer workshops.

The Company encourages adoption of environment-friendly

practices that lead to resource conservation while enhancing

customer satisfaction.

The Company has introduced a range of high-performance

lubricants, coolants and car care products under SMC’s global

brand, ECSTAR. Initially introduced in NEXA service workshops,

ECSTAR products have undergone rigorous testing under

extreme conditions to evaluate oil performance under high shear

and high thermal load conditions, influence of deposits formed on

various engine parts, and friction loss behaviour and efficiency

improvement.

End of Life Vehicle

The Company’s export and domestic vehicles comply with

the European Union’s End of Life Vehicles (ELV) Directive in

terms of avoidance of potentially toxic substances used in auto

components. In addition, the Company’s export vehicles are

minimum 95% recoverable and 85% recyclable, meeting the ELV

Directive for reusability, recyclability and recoverability. From

2018 onwards, the Company has started the process to make

domestic models meet the recoverability and recyclability norms.

Provides control and monitoring of

oil consumption to reduce wastage

Leads to better and faster washing

and reduces consumption of water

by around 20%

Repairs minor dents without stripping

the paint which is environment-

friendly, faster and cost effective

Helps in reducing the washing

time, improving wash quality and

reducing water consumption by

around 270 million litres per annum

Workshops covered

Workshops covered

Workshops covered

Workshops covered

609

880

509

1,130

597

779

400

622

752

1,080

564

1,130

Automated oil management system

Automatic car and underbody washing system

Paint-less dent repair system

Dry wash systems

FY'16

FY'17

FY'18

FY'16

FY'17

FY'18

FY'16

FY'17

FY'18

FY'16

FY'17

FY'18

Sustainability Report | Product Stewardship I Collaborating with Stakeholders

103

Collaborating with StakeholdersThe Company has forged relationships with different stakeholder

groups throughout the product life-cycle and has mapped its

internal and external stakeholders. The practice of relationship

building and addressing stakeholders’ needs and priorities is

central to the Company’s sustainability approach. The Company

has established channels to connect, interact and engage with

the stakeholders and ensure their satisfaction and support.

Customers

The Company understands that customer loyalty and retention

depends solely on customer satisfaction. Therefore, the Company

is committed to providing its customers the best experience in all

areas of interface and interactions, including sales and service.

Customer Experience To connect with the aspirational youth and new generation car

buyer, the Company has undertaken to revamp and upgrade

its sales network, in phases. Branded as Maruti Suzuki ARENA,

the new and upgraded showrooms redefine the way customers

experience cars. These newly designed spaces create a warm,

friendly and dynamic environment and leverage digital technology

for a superior car-buying experience.

The Company has also set up new True Value outlets which have

digitised processes to help customers access more information

and evaluate cars at their convenience. The objective is to offer

purchasers of pre-owned cars the same experience as buyers of

new cars.

Apart from increasing and transforming the service network across

India, the Company has continued to take customer convenience

to the next level.

• To provide flexibility to customers for getting their vehicles

serviced as per their convenience, 1,767 dealer workshops

are operating all seven days a week, 482 workshops are

operating on extended shifts (12-16 hours daily operation) and

61 workshops are operating in two shifts (more than 16 hours

daily operation).

• As on 31st March 2018, 1,423 Maruti Mobile Support (MMS)

vehicles were providing servicing facility at the doorstep of

customers, mostly in areas away from the existing service

infrastructure, using a mobile vehicle equipped with tools

required for regular service and minor repairs.

• To provide timely assistance to customers during vehicle

breakdown on the road, the spread of Maruti On Road Support

(MOS) network has increased in recent years to 340 two-

wheeler MOS and 415 four-wheeler MOS in 414 cities which

attend to over 11,000 breakdown calls per month.

• Maruti Care, a mobile-based application that provides

customers facilities such as service booking, workshop locator,

cost calculator, driving tips, service records, feedback and

service reminders, was upgraded in 2017-18. For instance, a

MOS module has been introduced to enable customers to seek

assistance directly through the mobile application and also

track the movement of MOS technicians.

The Company’s wide network of service centres and excellent

service quality has been a major strength and has led to sustained

confidence of the customers in the brand. With an aim to also

redefine customer’s car servicing experience, the Company

has offered premium servicing centres under NEXA. These

centres are making extensive use of technology and improved

infrastructure to enhance transparency, comfort and convenience

for customer service.

ARENA showrooms

NEXA Service

104

Maruti Mobile Support

Grievance RedressalThe Company has instituted a robust customer complaints and

grievance redressal management system. This includes a structured

complaint management system on the Company’s website, through

which customers send their concerns to dealers. Customers'

concerns are addressed through internal escalations and alerts.

Customer Satisfaction The Company regularly engages with customers to get their

feedback on products and gauge their satisfaction levels.

Engagement mechanisms include brand track, customer meets,

product clinics, mega service camps and free check-up camps.

In 2017-18, 19,251 service connect activities were conducted

through which around seven lakh customers were attended to.

Other mechanisms of engagement include telephonic surveys,

e-feedback cards, e-mails, SMSes and weblinks.

online portal, to strengthen dealers’ in-house training systems.

The portal collates all service-related information in electronic

form such as service training modules, handbooks and videos,

service literature and circulars, and educational posters. With

the help of these platforms, dealers follow important service

information and conduct trainings and workshops to improve

technical knowledge, service quality and productivity. In 2017-18,

over 72,000 of the Company’s network staff have been trained on

various topics such as vehicle maintenance and repair, customer

handling, auto body repair and auto body paint refinish.

The Company has set up Automated Skill Enhancement Centres

(ASECs) in Industrial Training Institutes (ITIs) for development

of skills in trades related to auto manufacturing, namely Motor

Mechanic Vehicle, Auto Body Repair and Auto Body Painting. In

2017-18, 12 ASECs were added, taking the total to 73. These

centres have created a pool of skilled workforce which can be

tapped by the industry.

Need-based training of Tier-I suppliers is carried out through

Maruti Suzuki Training Academy. Apart from shop-specific

trainings (e.g., body, paint, press, weld), trainings on preventive

maintenance, 5S and plant safety are also conducted.

Employees

The Company understands the importance of human capital in

achieving success in a challenging business environment. The

Company fosters a culture that attracts, develops and retains

competent people, promotes diversity and equal opportunity,

and continuously engages with the employees. The sense of team

spirit and openness is reflected in its open offices and common

canteens.

Workforce Diversity The Company had 34,515 employees including 14,940 regular

and 19,575 non-regular employees working at the various

offices and manufacturing facilities as on 31st March 2018. The

non-regular employees include apprentices, contractual and

temporary workers and student trainees.

CUSTOMERS WERE COVERED

BY 19,251 SERVICE CONNECT

ACTIVITIES THIS YEAR7LAKH

Aspiring for customer delight, the Company has developed a

comprehensive measurement model that assesses the overall

customer experience based on customer experience at the sales

outlets and service workshops and will help make improvements

in sales and service performance to meet customer requirements

and expectations.

Dealerships & Suppliers

The Company continuously engages with the dealers for

developing the knowledge and skills of their service manpower.

In addition to the Central Service Training Centre in Gurugram

facility and 18 Regional Service Training Centres spread across

the country, the Company runs 456 Dealer Training Centres to

help dealers conduct in-house training of the service staff. The

Company has also developed a Service Knowledge Centre, an

Sustainability Report | Collaborating with Stakeholders

105

Workforce

Manpower category 2015-16 2016-17 2017-18

Regular manpower (Assistant engineer & above, associates/ technician and trainees including CTs, JETs & GETs)

13,259 14,178 14,940

Apprentices 1,276 2,548 2,454

Other non-regular employees

(Contractual/temporary workers, student trainees)

10,626 12,643 17,121

Total manpower 25,161 29,369 34,515

Break-up of workforce (regular manpower) by age group and gender

Less than 30 years Between 30-50 years Over 50 years Total

Male Female Male Female Male Female

Top and senior management - - 88 - 85 2 175

Mid management 2 - 224 4 71 2 303

Junior management 2,151 228 2,547 155 341 9 5,431

Supervisors 1,598 82 1,350 16 97 - 3,143

Associates 1,649 - 4,091 8 131 9 5,888

Total 5,400 310 8,300 183 725 22 14,940

The Company supports employment of local population, and the largest share (95%) of employees comes from the local population i.e.

from within India. The number of differently-abled regular employees as on 31st March 2018 was 13.

Employee RetentionThe Company is committed to keeping the morale of employees high and retaining them over the long term by providing employee

benefits and opportunities for career development. In the reporting period, 1,145 regular employees were recruited and 360 employees

separated from the Company. The Company conducts comprehensive exit interviews with the employees who resign. This allows the

Company to assess and improve upon existing HR practices and employee retention programmes.

New hires by age group and gender



Top and senior management - - 1 - 1 1 3

Mid management - - 2 - - 2 2

Junior management 599 65 93 9 - - 766

Supervisors 244 9 15 - - 1 269

Associates 96 - 9 - - - 105

Turnover* by age group and gender



Top and senior management - - 1 - 10 - 11

Mid management - - 1 - 7 - 8

Junior management 140 20 59 6 51 1 277

Supervisors 13 2 7 - 13 - 35

Associates 3 - 2 - 24 - 29

*Turnover comprises employees who left the organisation (includes resignation, retirement, death in service, etc.)

106

Employee Connect initiatives to engage employees and

their families

Employee Benefits The Company makes benefits available to both its permanent and

contractual employees. Regular staff are provided with subsidised

meals. All employees along with their dependent children and

parents are covered under the Hospitalisation Policy. Contractual

employees are served free meals and are covered under the

Government’s Employee State Insurance scheme. There is a

medical centre in factory premises for first-aid and health check-

ups of employees. In addition, the Company is facilitating a

housing scheme for workers to enable them own a home.

The Company’s leave structure is designed considering the

regulatory requirements, with provision for employees to avail

earned, sick and maternity leaves. During the year, 34 women

employees had availed maternity leave, of which 20 employees

have rejoined the Company after maternity leave and one has left

the organisation. The Gurugram factory has a crèche to provide

female employees with child-care support.

Employee Relations The Company respects the right of employees to form and join

a union. There are internal and independent labour unions at

the Company’s manufacturing locations and union elections are

held as per union by-laws. The Company’s management officially

recognises three employee unions, one each at its Gurugram

facility, Manesar vehicle manufacturing facility and Manesar

powertrain facility. The unions represent 100% of the associates

working at these facilities. A minimum notice period of 21 days as

per regulatory requirements is typically given to employees prior

to implementation of any significant change in the conditions of

service that could affect them substantially.

The Company maintains multiple channels of two-way

communication with employees. The management’s focus

on constructively engaging with its workers is evident from

the monthly meetings of the Managing Director with union

representatives. In addition, there is periodic communication of

senior management from the HR and Production departments

with the associates, supervisors and union representatives.

These interactions create a relationship of trust and synergy to

achieve common goals.

The Company regularly organises helpdesks at the shop floors to

understand the views and concerns of the workers and addresses

them in a structured manner. Temporary workers are also

encouraged to communicate their concerns to the management.

The Company believes in reaching out to the family members

of employees to strengthen the bond between employees and

the organisation. The Company undertakes various activities

throughout the year to connect with the employees and their

families which includes annual day, family day, family visits

to the factories, children career counselling and meritorious

children award.

ROBUST EMPLOYEE ENGAGEMENT PROCESSES HELP

FOSTER A RELATIONSHIP OF TRUST AND SYNERGY TO

ACHIEVE COMMON GOALS.


107

Talent Management and Development Employee training and capacity building programmes are

undertaken through the Maruti Suzuki Training Academy which

has developed a Learning and Development Framework in line

with SMC. Through this training structure, a learning map is

assigned for every employee, across levels. Further, learning

gaps are traced through an online development centre and

subsequently, capability building interventions are designed to

cover them. In the reporting period, 77% of the regular employees

were covered under various training programmes.

OF THE REGULAR EMPLOYEES

WERE COVERED UNDER

VARIOUS TRAINING

PROGRAMMES

77%

Employee training programmes

• Business ethics

• Conflict management

• Assertive skills

• Decision making

• Trust building

• Discipline

• Anger/conflict management

• Transfer of knowledge

• Personal drive to excel

• Empowerment and delegation

• Collaboration

• Creativity and learnability

• Nurturing new associates

• Shop-floor communication

• Taking ownership

• Developing people skills

• Strategic thinking and personal effectiveness

• Transformational leadership

• Subordinate developmentSenior management

• Creativity and learnability

• Conceptual thinking

• Transformational leadership

• Subordinate developmentMiddle management

Junior management

Associates & Supervisors

T R A I N I N G P E R S O N - H O U R S

FY'17

FY'18

995,381

1,033,055

Average employee training person-hours

2017-18

Male Female

Senior management 18.8 8.0

Mid management 28.4 19.3

Junior management 55.7 69.7

Supervisors 43.4 38.1

Workers 19.3 15.8

The Company offers a comprehensive suite of programmes, tools

and interventions that facilitate robust performance and career

management for the workforce. Regular feedback is provided

to the Company’s employees, enabling them to grow in their

professional space. All employees have clearly articulated goals

for performance. The annual performance appraisal helps define

new goals and identifies competency development needs. Every

eligible permanent employee received a formal performance

appraisal and review during the reporting period.

1,033,055 hours

108

CSR spend (` million)

372.5 784.6 894.5 1,250.8

FY'15 FY'16 FY'17 FY'18

Community

The Company’s social responsibility extends beyond its

employees and customers to the communities neighbouring

the manufacturing facilities and the society at large. The

Company’s social initiatives focus on Community Development,

Skill Development and Road Safety, and are aimed at creating

opportunities for people to live a dignified, healthy, safe and

productive life.

The Company strives to achieve high standards of quality,

productivity and customer care in the automobile industry and

the manufacturing sector. The Company uses the same rigour and

discipline in undertaking social projects, which includes needs

assessment during project design, efficient and timely execution

and impact assessment during the project life-cycle.

The Company acknowledges and values the role of collaborative

action to address social issues and create social impact.

Therefore, collaborations and partnerships form the cornerstone

of the Company’s social projects. The Company works closely

with the Government, communities, implementation partners and

other expert agencies. Ongoing consultations with partners and

beneficiaries help the Company strengthen social relations and

evaluate the effectiveness of projects.

In 2017-18, the Company spent ` 1,250.8 million on social projects,

which is slightly over 2% of its average net profit for the previous

three years.

Government & Industry Bodies

The Company actively engages with the Government through industry associations on future policies, regulations and implementation

plans in the areas of emissions, safety, vehicle scrapping, trade, research and development, electric and hybrid vehicles, and inclusive

development.

Industry body memberships

Name of the industry committee/forum Position

CII IT & ITeS and National CIO Forum Member

CII National Committee on Bio Energy Member

CII National Committee on Design Member

CII Northern Region Committee on CSR Member

CII Northern Region Committee on Affirmative Action Member

CII Northern Region Committee on Hi-Tech Automation & Robotics Chairman

FICCI Committee on Industry 4.0 Chairman

FICCI Taskforce on Free Trade Agreements Chairman

ASSOCHAM National Council on Auto & Auto Ancillaries Chairman

Society of Indian Automobile Manufacturers (SIAM) Treasurer

SIAM Body on International Relations and Trade Policy Co-Chairman

SIAM Body on Trade Fairs Co-Chairman

SIAM Body on Taxation Procedural Chairman

SIAM Body on E-mobility Chairman

SIAM Body on Styling and Design Co-Chairman

SIAM Body on Emission and Conservation Chairman

SIAM Body on Central Motor Vehicles Rules and Safety Co-Chairman

The Company also engages with the Society for Automotive Fitness and Environment (SAFE), Society of Automotive Engineers (SAE),

All India Management Association (AIMA), National HRD Network (NHRD) and Bureau of Indian Standards (BIS). The Company is also

a member of the India chapter of the United Nations Global Compact (UNGC) and participates in dialogue with peers and experts on

sustainable business practices.


109

Community Development

The Company recognises the need and responsibility to maintain harmonious relations with the neighbouring communities and

provide support for their economic and social development. The villages surrounding the Company’s manufacturing facilities

have seen sharp rise in population, mostly migrants, due to the rapid industrialisation in the area. This has put tremendous strain

on the basic infrastructure and adversely impacted environmental and social conditions in the villages. The Company has adopted

neighbouring villages for comprehensive social development. Several rounds of consultation with village community members and

their representatives have led to the formulation of village development plans covering the critical areas for intervention. These

include water, sanitation, education and health. The Company aims to implement village development plans in 26 adopted villages in

the next four years.

Safe drinking water provided through Water ATMs

Door-to-door waste collection by sweepers

WaterTo provide the community with access to safe drinking water,

the Company has designed a financially self-sustainable and

replicable model. Partnering with Waterlife India, the Company

has set up automated water dispensing units (Water ATMs)

which provide communities with potable water at nominal rate of

35 paise per litre. The Water ATM uses a 10-stage UV filtration

technology that ensures the water meets WHO standards and

retains essential minerals, with minimal wastage. The reject water

is used for horticulture. The Company bears the initial cost of the

Water ATM, the panchayat provides the land and the electricity

to operate the facility, while Waterlife India sets up, operates and

maintains the plant. The response from the communities has been

positive and over 8,000 households are benefitting.

SanitationTo provide a hygienic environment in the adopted villages, the

Company has undertaken solid and liquid waste management

initiatives such as laying of sewer lines, construction of household

toilets and household waste collection and disposal. Behavioural

change communication and awareness drives are integrated into

project execution.

Common community assetsThe Company is committed to improving the overall quality of

life in the villages. The Company has constructed and renovated

community halls and paved roads based on the needs of the

community.

VILLAGE HOUSEHOLDS

HAVE BEEN PROVIDED SAFE

DRINKING WATER THROUGH

14 WATER ATMS.

8,000

110

Support teachers and teaching aids provided at schoolsInfrastructure development in government schools

Community development programmes

2015-16 2016-17 2017-18 Cumulative

Villages adopted 21* 3 2 26

WaterWater pipelines 800 m 5,940 m 800 m 7,540 m

Water ATMs - 4 10 14

SanitationSewer lines 11.3 km* 10 km 16.48 km 37.78 km

Individual household toilets in Manesar, Rohtak, Gujarat and

Bengaluru

1,507* 1,100 1,200 3,807

Sweepers in Gurugram, Manesar and Rohtak 65* 8 - 73

EducationSchools upgraded 37* 7 2 46

Supplementary teachers 30 8 2 40

School principals, government teachers and supplementary

teachers trained

- 109 210 319

Common community assets -

Paved streets in villages 699 m 828 m 10,100 m 11,627 m

Community halls 2* 1 3** 6

*Represents cumulative figures till 2015-16

**Includes three community halls under construction

EducationThe Company strives to enhance the enrollment, retention and learning levels of students in the government schools in the adopted

villages. Based on need assessment, support teachers have been engaged for maths, science and English, and teacher training is

undertaken regularly in partnership with the Councils of Educational Research and Training. Teaching aids such as projectors have

been provided to make teaching and learning more interactive and joyful. Other initiatives include renovation of classrooms, installation

of blackboards, ensuring availability of drinking water and construction of toilets.

Water ATM• Decrease in waterborne diseases, enhancing productivity and well-being

and reducing spending on health care

• Water test reports confirmed substantial reduction of TDS, total hardness

and turbidity

Household toilets• Over 95% households surveyed in the adopted villages in Haryana were

using toilets

• 98% households felt positive impact of the toilets on their lives

• Elderly people found newly constructed toilets easy to access

IMPACT ASSESSMENT


111

From encountering snakes and scorpions to averting the gaze of curious onlookers, women in this village found it difficult to relieve themselves in the fields.

I have made adjustments all my life, but adjusting to not having a toilet was the most difficult.

RESTORING DIGNITY AND PRIDE TO RURAL WOMEN

S A N D H YA ,

A L I YA R V I L L AG E , M A N E S A R

Sandhya had been living without a household

toilet since the year 2000, when she got

married and moved from Delhi to Aliyar.

Inspite of having used a household toilet

before her marriage, she did not complain

about having to go to the fields in the village.

However, what hurt her was that her brothers

stopped visiting her because there was no

toilet in her house and defecating in the open

was unimaginable to them.

After Maruti Suzuki constructed toilets in

Aliyar, Sandhya and other women in her

family feel safer and more dignified. Today,

even the men in the village prefer the comfort

of using a toilet at home and participate in

planning the position and design of their

household toilets.

112

Skill Development

The automobile industry in India is growing steadily and is expected

to attain the third position globally in terms of unit sales. Future

increase in production capacities and expansion in sales and service

network are expected to create demand for skilled workers. The

Company believes that it can contribute to the nation’s development

goal of generating dignified and rewarding employment by providing

training to the youth on skills in manufacturing and service sectors.

Upgradation of Government ITIs

One of the earliest skill development initiatives of the Company

involves supporting Government-run Industrial Training Institutes

(ITIs) across India to provide quality training programmes covering

all manufacturing trades. The intervention areas include upgrading

workshop infrastructure, facilitating training on industry oriented

add-on curriculum, enhancing industry exposure for trainers

and students, and imparting soft skills to make the students

industry-ready.

Skill enhancement in automobile trades

Recognising the gap between the training imparted at ITIs

and the skills required for gainful employment, the Company

has set up Automobile Skill Enhancement Centres (ASEC) in

select Government-run ITIs across India. The ASECs are model

workshops where practical training is given to students by full-

time trainers provided by the Company on automobile trades such

as Auto Body Repair (ABR) and Auto Body Painting (ABP). ASECs

offer specialised courses that lead to higher job opportunities, and

are designed to provide students with access to latest information

and technology, build capacity to undertake quality service

and repair of vehicles, and give exposure on client interactions,

thereby enhancing their employment potential. Modern paint booths set up in ASECs

Students being trained on safety equipment in the safety lab at the Japan India Institute for Manufacturing (JIM) in Gujarat


113

Mini vehicle assembly line at the JIM

Skill development programmes

2015-16 2016-17 2017-18 Cumulative

Upgradation of Government ITIs Supported ITIs 31* 10 1 42

Workshops upgraded 9 71 13 93

Students trained 8,966 10,353 17,104 36,423

Teachers trained 709 869 1,146 2,724

Students visiting factories for industry exposure 5,124* 2,901 3,278 11,303

Skill enhancement in automobile tradesAutomobile Skill Enhancement Centres 50* 10 13 73

Students trained 5,900* 6,408 6,686 18,994

Japan India Institute for ManufacturingStudents beneficiaries - - 353 -

Trade experts and teachers - - 40 -

* Represents cumulative figures till the year 2015-16

Virtual weld simulator for students to learn welding trade

• The Company’s skill development programmes are equipping youth to

avail of the growing job opportunities in automobile manufacturing and

servicing

• The ITI management committee and teachers are taking greater interest

in governance of the courses and better placements

• The students have experienced an increase in self-confidence and

aspirations

IMPACT ASSESSMENT

Japan India Institute for Manufacturing

In 2017-18, a highlight of the Company’s skill development programme was the launch of the first Japan India Institute for Manufacturing

(JIM). Born out of an agreement between the Governments of Japan and India to create a pool of 30,000 skilled manpower for

manufacturing in India, the JIM was set up by the Company at A. S. Patel (Pvt.) Industrial Training Institute (ITI) in Ganpat University at

Mehsana in Gujarat. It is a model ITI offering courses in eight trades related to automobile manufacturing, maintenance and services.

The unique features of the institute are the mini vehicle assembly line, safety lab, virtual welding simulators and spot welding guns,

which have been installed for hands-on learning. The curriculum of the Japanese Manufacturing Practices and Processes course is

developed by the Association for Overseas Technical Cooperation and Sustainable Partnerships (AOTS), Japan, under the guidance of

Ministry of Economy, Trade and Industry (METI), Japan. In addition to the technical curriculum, the JIM offers training in Japanese shop

floor practices, soft skills, interview skills, English language and safety.

114

Sachin wanted to progress in life but had little insight on what he could do. This

is when his father saw an advertisement about Maruti Suzuki JIM and enrolled

Sachin in a course on Auto Body Painting.

Apart from gaining job-oriented skills, Sachin feels he has been significantly

benefitted by the soft skills trainings he has received at the JIM. He has improved

his communication skills to a great extent. From being a shy and under-confident

boy, he has grown into a confident youngster. Today, he is employed with

Suzuki Motor Gujarat in Hansalpur. He feels that he is fortunate to have received

vocational training at Maruti Suzuki JIM.

Every day I have come back with some input, insight and piece of wisdom, be it related to automobile engineering and maintenance or personality development. I am a changed person now. Through me, my siblings and my family members have benefitted, since I share whatever I have learnt and assimilated here.

Not even a single day have I returned home empty handed.

MAKING SAFETY AND OPERATIONAL EFFICIENCY A WAY OF LIFE

S AC H I N ,

S T U D E N T AT T H E J I M


115

Road Safety

India accounts for the highest number of road deaths in the world, and is committed to bringing down fatalities at least by half in the next

few years. Road safety depends on a multitude of human, environmental and infrastructural factors and requires a multidimensional

management approach with involvement of several stakeholders. While enhancing customer and pedestrian safety by providing

advanced safety features in cars ahead of regulations, the Company has also been undertaking social initiatives targeting aspects of

road safety with high potential impact.

Automated driving test centres

Recognising the importance of a stringent driving licence

system and the initiative of the Government of Delhi to reform

the current licensing process, the Company has partnered with

the Department of Transport to set up 12 Automated Driving

Test Centres. These centres are being equipped with high-

resolution cameras to capture real-time video of tests, and a

suite of technologies to generate instantaneous vector graph and

authenticate the test applicant through biometrics. Through these

centres, the Company will support the Government in making

the driving licensing system transparent, stringent and efficient,

ultimately contributing to safe roads. Based on the experience in

Mr. Kenichi Ayukawa, MD & CEO, Maruti Suzuki, and Mr. Nitin Gadkari, Minister of Road Transport & Highways, Shipping and Water

Resources, River Development & Ganga Rejuvenation, Government of India, at the MOU signing ceremony for TSMS

the national capital, the Company’s initiative could stimulate more

such meaningful public-private partnerships in the country.

Technology-driven traffic management system

Studies by the Ministry of Road, Transport and Highways have

shown that about 37% of road accidents in 2016 took place at

traffic intersections, of which a significant number occurred at

uncontrolled junctions.

During the reporting period, the Company joined hands with Delhi

Police to implement an advanced Traffic Safety Management

System (TSMS), a first-of-its-kind in the city. The first phase of

implementation has begun on a 14 km long stretch from Dhaula

Kuan to Sarai Kale Khan, an important urban arterial road having

10 junctions with high density traffic. The system consists of a

network of 100 high-definition cameras, which will simultaneously

capture traffic light and speeding violations and record the

number plate of the offender. The system will transmit images to

the central control room of Delhi Police and generate an e-challan

(e-penalty slip) against the offender. Both partners believe that the

TSMS technology will enable the police to increase and improve

oversight on roads and promote a culture of compliance among

road users over time.

GOVERNMENT DATA SHOWS THAT DRIVER FAULT IS

THE MOST COMMON REASON FOR ROAD ACCIDENTS.

THE COMPANY HAS FOCUSED ON IMPLEMENTING

TECHNOLOGY-LED INTERVENTIONS TO HELP THE

ADMINISTRATION TEST DRIVER SKILLS AND REGULATE

DRIVER BEHAVIOUR ON ROADS.

116

#PehniKya? campaign won Best PR Idea and Best PR

Integrated Communication international award

#PehniKya? campaign to promote seat belt usage

Even as the Indian automobile industry evolves rapidly, use of seat

belt remains abysmally low among vehicle occupants. In vehicles

equipped with airbags, non-usage of seat belt can be additionally

harmful in the event of a crash. In 2017-18, the Company undertook

a detailed national survey of 17 cities to identify the percentage of

seat belt usage (only 25%) and the factors deterring its use among

vehicle occupants.

The Company undertook a 360-degree nationwide campaign

to address the factors for non-usage that had emerged from the

survey. Apart from receiving spontaneous widespread support

from the civil society, Government agencies and the media, an

impact assessment survey showed that the #PehniKya? campaign

has been able to achieve positive behavioural change among

vehicle users.

Driving training programmes

The Company’s driving training programmes are aimed at

producing quality drivers for Indian roads. Over the years, these

programmes have covered various sections of the society across

the country.

The Company manages seven Institutes of Driving and Traffic

Research (IDTR) in partnership with state governments, and

a network of 450 Maruti Driving Schools spread across India.

Each year, over 1.5 lakh new licence seekers and experienced

commercial vehicle drivers receive driving training at these

centres. The IDTRs set standards for driving training using

scientifically designed test tracks, driving simulators and a

well-defined course curriculum. Customised training materials,

including audio visuals, are created for classroom training. These

institutes are scaling up the ‘Train-the-Trainer’ programmes to

create a multiplier effect.

The Company’s ‘Unnati’ programme offers driving training and

soft skills training for better employability. This benefits nearly

1,100 people annually, including a sizeable number of young

women across 13 cities in India. The Company arranges year-

round programmes for truck drivers and tribal youth aiming to

bring them into the economic and social mainstream.

The Company’s annual week-long awareness ‘Jagriti’ campaign

focuses on overall development of truck drivers and attendants

through competitions, guest lectures, quizzes and other

interactive activities. Health and eye check-ups along with

confidential testing for HIV/AIDS are also done.

Through the All Gujarat Institute of Driving Technical Training and

Research (AGIDTTR) set up in partnership with the Government

of Gujarat, the Company has trained over 12,000 tribal youth,

of which 80% have found gainful employment.


117

Road safety programmes

2015-16 2016-17 2017-18 Cumulative

Sponsored training of underprivileged (existing drivers) 36,178* 31,009 39,613 106,800

Train the trainers 434* 379 1,300 2,113

Driving training of underprivileged (Unnati programme) - - 1,776 1,776

Employment provided through Unnati programme - - 1,153 1,153

Deployment of traffic marshals in Gurugram 100* - 40 140

* Represents cumulative figures till 2015-16

Latest driving training vehicles at IDTRs Training provided on driving simulators

Unnati programme• Over 80% of trainees have been employed

• Increase in average income from `7,421 per month to `11,364 in the

driving profession

• 77% of the trainees felt that training has helped them in improving their

self-confidence and ability to communicate better

#PehniKya? campaign• Post campaign, seat belt use rate increased to 41%

(increase of 16 basis points) compared to pre-campaign rate of 25%

• 60% people surveyed have seen or heard of #PehniKya? campaign

• 67% people are motivated to wear seat belt after watching the television

advertisement

• 59% of people who saw the campaign are likely to recommend wearing

seat belts to their friends and family members

IMPACT ASSESSMENT

118

Damore did various odd jobs before he learnt about AGIDTTR

and its driving training courses. There, he enrolled himself for

a Light Motor Vehicle driving course.

It wasn’t just the state-of-the-art infrastructure with

scientifically designed driving test tracks and driving

simulators that attracted Damore. He also felt a sense of

belongingness and got an opportunity to meet people from

different backgrounds. Being able to bond with the other

fellow trainees over refreshing yoga sessions, drawing

classes, dining together and playing with them helped shape

his personality in a holistic way.

After completion of his course, he was surprised by the

changes he had witnessed within himself. He was able to buy

a new vehicle which he uses as a cab for school children.

It not only helps him fetch a steady income of ` 12,000 per

month, but also be a harbinger of change and hope for other

youth in his village.

Going from an aimless life to becoming a certified and licensed driver who knows how to conduct himself socially. I was also able to buy a new vehicle and help the children in my village. This makes me feel content with myself, and my family can also vouch for this change in me.

I give full credit for my transformation to AGIDTTR.

TIME TO LEARN ANEW AND EXPERIENCE MANY FIRSTS

DA M O R E ,

F R O M DA H O D Z I L L A , 1 5 0 K M

F R O M T H E AG I DT T R

Sustainability Report | Collaborating with Stakeholders I GRI Content Index

119

GRI CONTENT INDEXGRI Standards: Core option

GRI Standard No. GRI Title Reference Section Page No.

Organisational Profile

102-1 Name of the organisation Company overview 82

102-2 Activities, brands, products, and services Scale of the organisation, Annual Report

(Management Discussion & Analysis)

82, 70

102-3 Location of headquarters Scale of organisation 82

102-4 Location of operations Scale of organisation 82

102-5 Ownership and legal form Scale of the organisation, Annual Report

(Notes to the Financial Statements)

82, 158

102-6 Markets served Scale of organisation 82

102-7 Scale of the organisation Scale of organisation, Annual Report (Management

Discussion & Analysis and Financial Statements

(Standalone))

82, 70, 132

102-8 Information on employees and other workers Employees 104

102-9 Supply chain Responsible procurement 90

102-10 Significant changes to the organisation and its supply

chain

Scale of organisation 82

102-11 Precautionary principle or approach Management approach for environmental

performance

88

102-12 External initiatives Report profile 82

102-13 Membership of associations Government and industry bodies 108

102-14 Statement from senior decision-maker Annual Report 12, 14

Ethics and Integrity

102-16 Values, principles, standards and norms of behaviour Code of business conduct and ethics 85

Governance

102-18 Governance structure Robust corporate governance 84

Stakeholder Engagement

102-40 List of stakeholder groups Stakeholder engagement 86

102-41 Collective bargaining agreements Employee relations 106

102-42 Identifying and selecting stakeholders Stakeholder engagement 86

102-43 Approach to stakeholder engagement Stakeholder engagement 86

102-44 Key topics and concerns raised Stakeholder engagement, Collaborating with

stakeholders

86, 103

Reporting Practice

102-45 Entities included in the consolidated financial statements Annual Report (Notes to the Consolidated

Financial Statements)

257

102-46 Defining report content and topic boundaries Report profile 82

102-47 List of material topics Materiality assessment 89

102-48 Restatements of information Report profile 82

102-49 Changes in reporting Report profile 82

102-50 Reporting period Report profile 82

102-51 Date of most recent report Report profile 82

102-52 Reporting cycle Report profile 82

102-53 Contact point for questions regarding the report Mr. Ranjit Singh, Vice President - CSR &

Sustainability, Maruti Suzuki India Limited, 1, Nelson

Mandela Road, Vasant Kunj, New Delhi 110070,

Tel: 011-46781123, E-mail: [email protected]

102-54 Claims of reporting in accordance with the GRI Standards Report profile 82

102-55 GRI content index GRI content index 119

102-56 External assurance Report profile, Assurance statement 82, 123

120

GRI Standards: Core option


GRI 103 Management Approach

GRI 200 Financial Topics

103 Management approach Management approach for economic performance 88

GRI 201 Economic Performance

201-1 Direct economic value generated and distributed Economic performance 84

201-3 Defined benefit plan obligations and other retirement plans Economic performance 84

GRI 204 Procurement Practices

204-1 Proportion of spending on local suppliers Responsible procurement 90

GRI 206 Anti-competitive Behaviour

206-1 Legal actions for anti-competitive behaviour, anti-trust,

and monopoly practices


GRI 300 Environmental Topics

103 Management approach Management approach for environmental

performance

88

GRI 301 Materials

301-1 Materials used by weight or volume Raw materials usage and recycling 91

301-2 Recycled input materials used Raw materials usage and recycling 91

GRI 302 Energy

302-1 Energy consumption within the organisation Energy efficiency 92

302-3 Energy intensity Energy efficiency 92

GRI 303 Water

303-1 Water withdrawal by source Water and waste water management 91

303-3 Water recycled and reused Water and waste water management 91

GRI 305 Emissions

305-1 Direct (Scope 1) GHG emissions Emissions reduction 93

305-2 Energy indirect (Scope 2) GHG emissions Emissions reduction 93

305-4 GHG emissions intensity Emissions reduction 93

305-6 Emissions of ozone-depleting substances Emissions reduction 93

GRI 306 Effluents and Waste

306-1 Water discharge by quality and destination Water and waste water management 91

306-2 Waste by type and disposal method Waste management 94

GRI 307 Environmental Compliance

307-1 Non-compliance with environmental laws and regulations Compliance management 86

GRI 308 Supplier Environmental Assessment

308-1 New suppliers that were screened using environmental

criteria

Control of substances of concern 90

GRI 400 Social Topics

103 Management approach Management approach for social performance 88

GRI 401 Employment

401-1 New employee hires and employee turnover Employee retention 106

401-2 Benefits provided to full-time employees that are not

provided to temporary or part-time employees

Employee benefits 106

GRI 402 Labour/Management Relations

402-1 Minimum notice periods regarding operational changes Employee relations 106

GRI 403 Occupational Health and Safety

403-1 Workers representation in formal joint management–

worker health and safety committees

Workplace health and safety 95

Sustainability Report | GRI Content Index

121

GRI Standards: Core option


GRI 404 Training and Education

404-1 Average hours of training per year per employee Talent management and development 107

404-2 Programmes for upgrading employee skills and transition

assistance programmes

Talent management and development 107

404-3 Percentage of employees receiving regular performance

and career development reviews

Talent management and development 107

GRI 407 Freedom of Association and Collective Bargaining

407-1 Operations and suppliers in which the right to freedom of

association and collective bargaining may be at risk

Employee relations 106

GRI 408 Child Labour

408-1 Operations and suppliers at significant risk for incidents

of child labour


GRI 409 Forced or Compulsory Labour

409-1 Operations and suppliers at significant risk for incidents

of forced or compulsory labour


413 Local Communities

413-1 Operations with local community engagement, impact

assessments, and development programmes

Communities 108

GRI 416 Customer Health and Safety

416-1 Assessment of the health and safety impacts of product

and service categories

Product stewardship 97

GRI 419 Socio-economic Compliance

419-1 Non-compliance with laws and regulations in the social

and economic area


122

ALIGNMENT WITH UNGC PRINCIPLESUNGC mapping

UNGC principle Description Reference Section Page No.

Principle 1 Businesses should support and respect the protection of

internationally proclaimed human rights

Code of business conduct and ethics,

Employee relations

85, 106

Principle 2 Business should make sure they are not complicit in

human rights abuses


Principle 3 Businesses should uphold the freedom of association

and the effective recognition of the right to collective

bargaining


Employee relations

85, 106

Principle 4 Businesses should uphold the elimination of all forms of

forced and compulsory labour


Employee relations

85,106

Principle 5 Businesses should uphold the effective abolition of child

labour


Principle 6 Businesses should uphold the elimination of

discrimination in respect of employment and occupation


Workforce diversity

85, 104

Principle 7 Businesses should support a precautionary approach to

environmental challenges

Management approach for environmental

performance

88

Principle 8 Businesses should undertake initiatives to promote

greater environmental responsibility

Responsible procurement,

Responsible operations,

Product stewardship

90, 91, 97

Principle 9 Businesses should encourage the development and

diffusion of environmentally friendly technologies

Responsible operations,

Product stewardship

91, 97

Principle 10 Businesses should work against corruption in all its

forms, including extortion and bribery


Sustainability Report | Alignment with UNGC Principles I Assurance Statement

123

Independent Assurance Statement

Scope and Approach

DNV GL Business Assurance India Private Limited has been

commissioned by the management of Maruti Suzuki India Limited

(Corporate Identity Number L34103DL1981PLC011375, hereafter

referred to as ‘MSIL’ or ‘the Company’) to carry out an independent

assurance of the qualitative and quantitative information related

to sustainability performance in the sustainability disclosures

(‘Sustainability Report’ or ‘the Report’) in its Annual Report 2017-

18 in printed format, for the financial year ending 31st March 2018.

The sustainability performance disclosures presented in the

Report has been prepared by the Company based on the Global

Reporting Initiative Sustainability Reporting Standards 2016

(‘GRI Standards’) and its Core option of reporting. The scope and

boundaries of the disclosures is described in the Sections ‘Report

Profile’ and ‘Materiality Assessment’ of the Report.

We performed a limited level of assurance based on our assurance

methodology VeriSustainTM, which is based on our professional

experience and international assurance best practices, including

International Standard on Assurance Engagements 3000 (ISAE

3000) Revised* and GRI Guidelines. Our assurance engagement

was planned and carried out during June 2018 to July 2018.

The intended user of this Assurance Statement is the Management

of the Company. We disclaim any liability or responsibility to a

third party for their decisions, whether investment or otherwise,

based on this Assurance Statement.

Responsibilities of the Management of MSIL and of the Assurance Providers

The Management of MSIL has the sole responsibility for the

preparation of the Report and is responsible for all information

disclosed in the Report as well as the processes for collecting,

analysing and reporting the information presented in the printed

version of the Report. In performing this assurance work, our

responsibility is to the Management; however, this statement

represents our independent opinion and is intended to inform the

outcome of the assurance to the stakeholders of the Company.

We provide a range of other services to MSIL none of which in

our opinion, constitute a conflict of interest with this assurance

work. Our assurance engagement is based on the assumption

that the Company has provided us data and information during

our review in good faith. We were not involved in the preparation

of any statements or data included in the Report, except for this

Assurance Statement. We expressly disclaim any liability or co-

responsibility for any decision a person or an entity may make

based on this Assurance Statement.

Basis of our Opinion

We planned and performed our work to obtain the evidence

considered necessary to provide a basis for our assurance

opinion. As part of the assurance, a multi-disciplinary team of

sustainability and assurance specialists performed work at MSIL’s

Head Office in New Delhi and sample facilities in Gurugram and

Manesar in Haryana, India. We undertook the following activities:

• Review of MSIL’s approach to stakeholder engagement and

materiality determination process and the outcome as stated

in this Report (we did not have any direct engagement with

external stakeholders);

• Interviews with selected senior managers responsible for

management of sustainability issues and review of selected

evidence to support topics disclosed in the Report (we were

free to choose interviewees and interviewed those with

overall responsibility to deliver the Company’s sustainability

objectives);

• Site visits to sample facilities to review processes and systems

for preparing site level sustainability data and implementation

of sustainability strategy (we were free to choose sites for

conducting assessments);

• Review of supporting evidence for key claims and data in the

Report;

• Review of the processes for gathering and consolidating the

performance data related to the chosen GRI Standards;

• Verification of the data consolidation of reported performance

disclosures in context to the Principle of Completeness as per

VeriSustain for a limited level of verification; and,

• An independent assessment of the Report against the

requirements of the GRI Standards, Core option of reporting.

During the assurance process, we did not come across limitations

to the scope of the agreed assurance engagement. The reported

data on economic performance, expenditure towards Corporate

Social Responsibility (CSR) and other financial data are based

on audited financial statements issued by the Company’s

statutory auditors.

1 The VeriSustain protocol is available on www.dnvgl.com

* Assurance Engagements other than audits or reviews of historical financial information.

124

Opinion

On the basis of the verification undertaken, nothing has come

to our attention to suggest that the Report does not properly

describe MSIL’s adherence to the GRI Standards Core option of

reporting, including the GRI 102: General Disclosures 2016, GRI

103: Management Approach 2016 and disclosures related to the

following GRI Standards which have been chosen by MSIL to bring

out its performance against its identified material topics:

• GRI 201: Economic Performance 2016 – 201-1, 201-3;

• GRI 204: Procurement Practices 2016 – 204-1;

• GRI 301: Materials 2016 – 301-1, 301-2;

• GRI 302: Energy 2016 – 302-1, 302-3;

• GRI 303: Water 2016 – 303-1, 303-3;

• GRI 305: Emissions 2016 – 305-1, 305-2, 305-4, 305-6;

• GRI 306: Effluents and Waste 2016 –306-1; 306-2;

• GRI 307: Environmental Compliance 2016 – 307-1;

• GRI 308: Supplier Environmental Assessment 2016 – 308-1;

• GRI 401: Employment 2016 – 401-1, 401-2;

• GRI 402: Labor/Management Relations 2016 – 402-1;

• GRI 403: Occupational Health and Safety 2016 – 403-1;

• GRI 404: Training and Education 2016 – 404-1, 404-2, 404-3;

• GRI 407: Freedom of Association and Collective Bargaining

2016 – 407-1;

• GRI 408: Child Labor 2016 – 408-1;

• GRI 407: Forced and Compulsory Labor 2016 – 409-1;

• GRI 413: Local Communities 2016 – 413-1;

• GRI 416: Customer Health and Safety 2016 – 416-1; and

• GRI 419: Socio-economic Compliance 2016 – 419-1.

Observations

Without affecting our assurance opinion, we provide the following

observations against the principles of VeriSustain:

MaterialityThe process of determining the issues that is most relevant to an

organisation and its stakeholders.

The Report brings out material topics which MSIL has identified as

being of highest importance to the Company and its stakeholders.

This has been validated through consultations with management

personnel across various levels of the Company. The Company

may further strengthen the process of materiality determination

by including views of other key stakeholder groups, peer-based

norms and sustainability context and considering impacts on the

short, medium and long-term. Nothing has come to our attention

to suggest that the Report does not meet the requirements related

to the Principle of Materiality.

Stakeholder InclusivenessThe participation of stakeholders in developing and achieving an

accountable and strategic response to sustainability.

The Report brings out the Company’s processes for identification

and responding to stakeholder needs expressed through various

mechanisms which the Company has established for engaging

with stakeholders on a periodic or ongoing bases. Nothing

has come to our attention to suggest that the Report does not

meet the requirements related to the Principle of Stakeholder

Inclusiveness.

ResponsivenessThe extent to which an organisation responds to stakeholder

issues.

The Report brings out MSIL’s feedback and responses to identified

material topics and key concerns, expectations and issues raised

by its significant stakeholders, through its policies, strategies,

management systems and governance mechanisms. Nothing has

come to our attention to suggest that the responses related to

identified material topics are not adequately represented in the

Report.

ReliabilityThe accuracy and comparability of information presented in the

report, as well as the quality of underlying data management

systems.

The majority of data and information verified at Head Office

and at sample locations visited by us were found to be fairly

accurate. Nothing has come to our attention to suggest that the

sample data and information verified as part of assurance is not

reliable or that the assumptions used were inappropriate. Some

of the data inaccuracies identified during the verification process

were found to be attributable to transcription, interpretation and

aggregation errors and the errors have been corrected. Nothing


meet the requirements related to the Principle of Reliability.

However, MSIL may implement appropriate tools for sustainability

data management, including processes for internal reviews and

validation, to further strengthen the reliability of its sustainability

disclosures.

Sustainability Report | Assurance Statement

125

CompletenessHow much of all the information that has been identified as

material to the organisation and its stakeholders is reported?

The Report fairly brings out MSIL’s Economic, Environmental and

Social performance for its identified reporting boundaries and

material topics through appropriate GRI Standards. The Company

may progressively extend its reporting boundaries in future

reporting periods to include relevant impacts and performance

disclosures from all entities included in its financial statement

e.g., sales offices, joint ventures and subsidiaries. Nothing


meet the Principle of Completeness with respect to scope,

boundary and time.

NeutralityThe extent to which a report provides a balanced account of an

organisation’s performance, delivered in a neutral tone.

The disclosures related to sustainability performance and

issues are presented in a neutral tone, in terms of content and

presentation, along with key concerns and challenges faced

during the period. Nothing has come to our attention to suggest

that the Report does not meet the requirements related to the

Principle of Neutrality.

For DNV GL Business Assurance India Private Limited

Kiran Radhakrishnan

Verifier

Senior Assessor

DNV GL Business Assurance India Private Limited, India

Vadakepatth Nandkumar

Assurance Reviewer

Head – Regional Sustainability Operations – Region India and

Middle East

DNV GL Business Assurance India Private Limited, India

9th July 2018, Bengaluru, India

DNV GL Business Assurance India (Private) Limited is part of DNV GL – Business Assurance, a global provider of certification, verification, assessment and train-

ing services, helping customers to build sustainable business performance. www.dnvgl.com

Financial Statements (Standalone) | Independent Auditor’s Report

126

Independent Auditor’s Report

To The Members of MARUTI SUZUKI INDIA LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial

statements of Maruti Suzuki India Limited (“the Company”), which

comprise the Balance Sheet as at 31 March, 2018, the Statement

of Profit and Loss (including Other Comprehensive Income), the

Cash Flow Statement and the Statement of Changes in Equity for

the year then ended, and a summary of the significant accounting

policies and other explanatory information.

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters

stated in Section 134(5) of the Companies Act, 2013 (“the Act”)

with respect to the preparation of these standalone Ind AS

financial statements that give a true and fair view of the financial

position, financial performance including other comprehensive

income, cash flows and changes in equity of the Company in

accordance with the accounting principles generally accepted

in India, including the Indian Accounting Standards (Ind AS)

prescribed under section 133 of the Act read with the Companies

(Indian Accounting Standards) Rules, 2015, as amended, and

other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate

accounting records in accordance with the provisions of the Act

for safeguarding the assets of the Company and for preventing

and detecting frauds and other irregularities; selection and

application of appropriate accounting policies; making judgments

and estimates that are reasonable and prudent; and design,

implementation and maintenance of adequate internal financial

controls, that were operating effectively for ensuring the accuracy

and completeness of the accounting records, relevant to the

preparation and presentation of the standalone Ind AS financial

statements that give a true and fair view and are free from material

misstatement, whether due to fraud or error.


Our responsibility is to express an opinion on these standalone

Ind AS financial statements based on our audit.

In conducting our audit, we have taken into account the provisions

of the Act, the accounting and auditing standards and matters

which are required to be included in the audit report under the

provisions of the Act and the Rules made thereunder and the

Order issued under section 143(11) of the Act.

We conducted our audit of the standalone Ind AS financial

statements in accordance with the Standards on Auditing specified

under Section 143(10) of the Act. Those Standards require that we

comply with ethical requirements and plan and perform the audit

to obtain reasonable assurance about whether the standalone Ind

AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence

about the amounts and the disclosures in the standalone Ind

AS financial statements. The procedures selected depend on

the auditor’s judgment, including the assessment of the risks

of material misstatement of the standalone Ind AS financial

statements, whether due to fraud or error. In making those risk

assessments, the auditor considers internal financial control

relevant to the Company’s preparation of the standalone Ind

AS financial statements that give a true and fair view in order to

design audit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of

the accounting policies used and the reasonableness of the

accounting estimates made by the Company’s Directors, as well

as evaluating the overall presentation of the standalone Ind AS

financial statements.

We believe that the audit evidence obtained by us is sufficient

and appropriate to provide a basis for our audit opinion on the

standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according

to the explanations given to us, the aforesaid standalone Ind AS

financial statements give the information required by the Act in the

manner so required and give a true and fair view in conformity with

the Ind AS and other accounting principles generally accepted in

India, of the state of affairs of the Company as at 31 March, 2018,

and its profit, total comprehensive income, its cash flows and the

changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit,

we report that:

a) We have sought and obtained all the information and

explanations which to the best of our knowledge and belief were

necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law

have been kept by the Company so far as it appears from our

examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including

Other Comprehensive Income, the Cash Flow Statement and

Statement of Changes in Equity dealt with by this Report are in

agreement with the books of account.

d) In our opinion, the aforesaid standalone Ind AS financial

statements comply with the Indian Accounting Standards

prescribed under section 133 of the Act.

127

e) On the basis of the written representations received from the

directors as on 31 March, 2018 taken on record by the Board of

Directors, none of the directors is disqualified as on 31 March,

2018 from being appointed as a director in terms of Section

164(2) of the Act.

f) With respect to the adequacy of the internal financial controls

over financial reporting of the Company and the operating

effectiveness of such controls, refer to our separate Report in

“Annexure A”. Our report expresses an unmodified opinion on the

adequacy and operating effectiveness of the Company’s internal

financial controls over financial reporting.

g) With respect to the other matters to be included in the

Auditor’s Report in accordance with Rule 11 of the Companies

(Audit and Auditors) Rules, 2014, as amended, in our opinion and

to the best of our information and according to the explanations

given to us:

i. The Company has disclosed the impact of pending litigations

on its financial position in its standalone Ind AS financial statements

- Refer to note 38 to standalone Ind AS financial statements.

ii. The Company has made provision, as required under the

applicable law or accounting standards, for material foreseeable

losses, if any, on long-term contracts including derivative

contracts.

iii. There has been no delay in transferring amounts, required

to be transferred, to the Investor Education and Protection Fund

by the Company. Refer to note 16 to standalone Ind AS financial

statements.

2. As required by the Companies (Auditor’s Report) Order,

2016 (“the Order”) issued by the Central Government in terms of

Section 143(11) of the Act, we give in “Annexure B” a statement on

the matters specified in paragraphs 3 and 4 of the Order.



Jitendra Agarwal

Partner

(Membership No. 87104)

Place: New Delhi

Date: 27 April, 2018


128

Annexure “A” to The Independent Auditor’s Report(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial

reporting of Maruti Suzuki India Limited (“the Company”) as of

31 March, 2018 in conjunction with our audit of the standalone

Ind AS financial statements of the Company for the year ended

on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing

and maintaining internal financial controls based on “the

internal control over financial reporting criteria established by

the Company considering the essential components of internal

control stated in the Guidance Note on Audit of Internal Financial

Controls Over Financial Reporting issued by the Institute of

Chartered Accountants of India”. These responsibilities include

the design, implementation and maintenance of adequate internal

financial controls that were operating effectively for ensuring the

orderly and efficient conduct of its business, including adherence

to respective company’s policies, the safeguarding of its assets,

the prevention and detection of frauds and errors, the accuracy

and completeness of the accounting records, and the timely

preparation of reliable financial information, as required under the

Companies Act, 2013.


Our responsibility is to express an opinion on the Company's

internal financial controls over financial reporting based on our

audit. We conducted our audit in accordance with the Guidance

Note on Audit of Internal Financial Controls Over Financial

Reporting (the “Guidance Note”) issued by the Institute of

Chartered Accountants of India and the Standards on Auditing

prescribed under Section 143(10) of the Companies Act, 2013,

to the extent applicable to an audit of internal financial controls.

Those Standards and the Guidance Note require that we comply

with ethical requirements and plan and perform the audit to obtain

reasonable assurance about whether adequate internal financial

controls over financial reporting was established and maintained

and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence

about the adequacy of the internal financial controls system over

financial reporting and their operating effectiveness. Our audit

of internal financial controls over financial reporting included

obtaining an understanding of internal financial controls over

financial reporting, assessing the risk that a material weakness

exists, and testing and evaluating the design and operating

effectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor’s judgement,

including the assessment of the risks of material misstatement of

the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our audit opinion on the

Company’s internal financial controls system over financial

reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is

a process designed to provide reasonable assurance regarding

the reliability of financial reporting and the preparation of financial

statements for external purposes in accordance with generally

accepted accounting principles. A company's internal financial

control over financial reporting includes those policies and

procedures that (1) pertain to the maintenance of records that, in

reasonable detail, accurately and fairly reflect the transactions and

dispositions of the assets of the company; (2) provide reasonable

assurance that transactions are recorded as necessary to

permit preparation of financial statements in accordance with

generally accepted accounting principles, and that receipts and

expenditures of the Company are being made only in accordance

with authorisations of management and directors of the Company;

and (3) provide reasonable assurance regarding prevention or

timely detection of unauthorised acquisition, use, or disposition

of the Company's assets that could have a material effect on the


129

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls

over financial reporting, including the possibility of collusion or

improper management override of controls, material misstatements

due to error or fraud may occur and not be detected. Also,

projections of any evaluation of the internal financial controls over

financial reporting to future periods are subject to the risk that

the internal financial control over financial reporting may become

inadequate because of changes in conditions, or that the degree

of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to

the explanations given to us, the Company has, in all material

respects, an adequate internal financial controls system over

financial reporting and such internal financial controls over

financial reporting were operating effectively as at 31 March, 2018,

based on “the criteria for internal financial control over financial

reporting established by the Company considering the essential

components of internal control stated in the Guidance Note on

Audit of Internal Financial Controls Over Financial Reporting

issued by the Institute of Chartered Accountants of India”.



Jitendra Agarwal

Partner


Place: New Delhi



130

Annexure B To The Independent Auditor’s Report(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

(i) (a) The Company has maintained proper records showing

full particulars, including quantitative details and situation of

property, plant and equipment.

(b) The property, plant and equipment except furniture

and fixtures, office appliances and certain other property,

plant and equipment having a carrying value of ` 2,923 million,

were physically verified during the year by the Management in

accordance with a regular programme of verification which, in

our opinion, provides for physical verification of the property,

plant and equipment at reasonable intervals. According to the

information and explanation given to us, no material discrepancies

were noticed on such verification.

(c) According to the information and explanations given to

us and the records examined by us and based on the examination

of the registered sale deeds / transfer deeds / conveyance deeds

provided to us, we report that, the title deeds, comprising all the

immovable properties of land and buildings which are freehold,

are held in the name of the Company as at the balance sheet date,

except the following:

Particulars of buildings Amount as on 31-03-2018 (` in million)

Remarks

4 residential flats

located in Mundra Port

10.38 Title deeds are yet

to be executed.

3 residential flats in

Ranchi

11.15 Title deeds are yet

to be executed.

In respect of immovable properties of land that have been taken

on lease and disclosed as property, plant and equipment in the

standalone financial statements, the lease agreements are in the

name of the Company, where the Company is the lessee in the

agreement except the following:

Particulars of land Amount as on 31-03-2018 (` in million)

Remarks

Land situated in

Kolkata

5.49 Under litigation

(ii) As explained to us, the inventories were physically verified

during the year by the management at reasonable intervals other

than for stock lying with third parties, tools and machinery spares

and goods in transit. Confirmations were obtained for stock lying

with third parties and subsequent receipts were verified in case of

good in transit in most of the cases. The discrepancies noted on

physical verification of inventories as compared to book records

were not material and have been properly dealt with in the books

of account.

(iii) According to the information and explanations given to us,

the Company has not granted any loans, secured or unsecured,

to Companies, firms, Limited Liability Partnerships or other parties

covered in the register maintained under section 189 of the

Companies Act, 2013.

(iv) In our opinion and according to the information and

explanations given to us, the Company has complied with the

provisions of Sections 185 and 186 of the Companies Act, 2013

in respect of grant of loans, making investments and providing

guarantees and securities, as applicable.

(v) According to the information and explanations given to us,

the Company has not accepted any deposit during the year in

terms of the provisions of Sections 73 to 76 or any other relevant

provisions of the Companies Act, 2013.

(vi) The maintenance of cost records has been specified by the

Central Government under section 148(1) of the Companies Act,

2013. We have broadly reviewed the cost records maintained by

the Company pursuant to the Companies (Cost Records and Audit)

Rules, 2014, as amended prescribed by the Central Government

under sub-section (1) of Section 148 of the Companies Act, 2013,

and are of the opinion that, prima facie, the prescribed cost

records have been made and maintained. We have, however, not

made a detailed examination of the cost records with a view to

determine whether they are accurate or complete.

(vii) According to the information and explanations given to us, in

respect of statutory dues:

(a) The Company has generally been regular in depositing

undisputed statutory dues, including Provident Fund, Employees’

State Insurance, Income-tax, Sales Tax, Service Tax, Customs

Duty, Excise Duty, Goods and Services Tax, Value Added Tax,

Works Contract Tax, cess and other material statutory dues

applicable to it to the appropriate authorities.

(b) There were no undisputed amounts payable in respect of

Provident Fund, Employees’ State Insurance, Income-tax, Sales

Tax, Service Tax, Customs Duty, Excise Duty, Goods and Services

Tax, Value Added Tax, cess and other material statutory dues in

arrears as at 31 March, 2018 for a period of more than six months

from the date they became payable.

131

Details of dues of Income-tax, Wealth Tax, Sales Tax, Service Tax, Customs Duty and Excise Duty which have not been deposited as on

31 March, 2018 on account of disputes are given below:

Name of the Statute Nature of the Dues Forum where Dispute is pending Period to which the

amount relates (various

years covering the

period)

Amount*

(` in million)

Amount unpaid

(` in million)

Income Tax Act, 1961 Income Tax Supreme Court 2004-2006 1,098 1,098

High Court 1993-2013 3,835 2,618

Income Tax Appellate Tribunal (ITAT) 2002-2015 53,713 51,036

Upto Commissioner (Appeals) 2007-2018 36 36

Wealth tax Act, 1957 Wealth tax High Court 1997-1998 1 -

The Central Excise

Act, 1944

Excise Duty Supreme Court 2000-2008 395 395

High Court 1986-1994 517 517

Customs, Excise & Service Tax Appellate

Tribunal (CESTAT)

2002-2016 11,931 10,330

Upto Commissioner (Appeals) 2004-2017 1,446 1,446

The Finance Act, 1994 Service Tax Supreme Court 2010-11 22 -

High Court 2009-2015 2 2

Customs, Excise & Service Tax Appellate

Tribunal (CESTAT)

2003-2015 3,319 3,258

Upto Commissioner (Appeals) 2004-2017 749 749

Customs Act, 1962 Customs Duty High Court 2004-2005 27 3

Commissioner Customs 1991-2014 51 51

Sales Tax Laws Haryana General Sales Tax Act Sales Tax Appellate Tribunal 2009-2010 16 -

Haryana General Sales Tax Act Assessing Authority 1984-1989 4 4

Delhi sales tax Act Assessing Authority 1987-1991 47 45

* amount as per demand orders including interest and penalty wherever quantified in the Order.

(viii) In our opinion and according to the information and

explanations given to us, the Company has not defaulted in the

repayment of loans or borrowings to banks. The Company has

neither taken any loans or borrowings from financial institutions

or government nor issued any debentures during the year.

(ix) The Company has not raised moneys by way of initial public

offer or further public offer (including debt instruments) or term

loans and hence reporting under clause (ix) of the Order is not

applicable.

(x) To the best of our knowledge and according to the information

and explanations given to us, no fraud by the Company and no

material fraud on the Company by its officers or employees has

been noticed or reported during the year.

(xi) In our opinion and according to the information and

explanations given to us, the Company has paid / provided

managerial remuneration in accordance with the requisite

approvals mandated by the provisions of section 197 read with

Schedule V to the Companies Act, 2013.

(xii) The Company is not a Nidhi Company and hence reporting

under clause (xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and

explanations given to us the Company is in compliance with

Section 177 and 188 of the Companies Act, 2013, for all

transactions with the related parties and the details of related

party transactions have been disclosed in the standalone financial

statements as required by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential

allotment or private placement of shares or fully or partly

convertible debentures and hence reporting under clause (xiv) of

the Order is not applicable to the Company.

(xv) In our opinion and according to the information and

explanations given to us, during the year the Company has

not entered into any non-cash transactions with its directors

or directors of its holding, subsidiary or associate company or

persons connected with them and hence provisions of section

192 of the Companies Act, 2013 are not applicable.

(xvi) The Company is not required to be registered under section

45-IA of the Reserve Bank of India Act, 1934.



Jitendra Agarwal

Partner


Place: New Delhi


132

(All amounts in ` million, unless otherwise stated)

Financial Statements (Standalone) | Balance Sheet I Statement of Profit and Loss

Balance SheetAs at March 31, 2018

Particulars Notes

No.As at

31.03.2018As at

31.03.2017

ASSETSNon-current assetsProperty, plant and equipment 4 130,473 129,197

Capital work-in-progress 4 21,259 12,523

Intangible assets 5 3,117 3,730

Financial assets

Investments 6 340,729 263,022

Loans 7 2 3

Other financial assets 9 324 238

Other non-current assets 12 18,583 16,031

Total non-current assets 514,487 424,744 Current assetsInventories 10 31,608 32,622

Financial assets

Investments 6 12,173 21,788

Trade receivables 8 14,618 11,992

Cash and bank balances 11 711 138

Loans 7 30 25

Other financial assets 9 2,846 950

Current tax assets (Net) 21 4,109 4,854

Other current assets 12 13,119 15,393

Total current assets 79,214 87,762 Total assets 593,701 512,506 EQUITY AND LIABILITIESEquity Equity share capital 13 1,510 1,510

Other equity 14 416,063 362,801

Total equity 417,573 364,311 LiabilitiesNon-current liabilitiesProvisions 17 265 219

Deferred tax liabilities (Net) 18 5,589 4,662

Other non-current liabilities 19 15,853 11,050

Total non-current liabilities 21,707 15,931 Current liabilitiesFinancial liabilities

Borrowings 15 1,108 4,836

Trade payables

Total outstanding dues of micro, small and medium enterprises 20 711 832

Total outstanding dues of creditors other than micro, small and medium enterprises 20 104,259 82,841

Other financial liabilities 16 13,338 13,027

Provisions 17 5,600 4,490

Current tax liabilities (Net) 21 8,541 7,987

Other current liabilities 19 20,864 18,251

Total current liabilities 154,421 132,264 Total liabilities 176,128 148,195 Total equity and liabilities 593,701 512,506

The accompanying notes are forming part of these financial statements

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP KENICHI AYUKAWA KAZUNARI YAMAGUCHIChartered Accountants Managing Director & CEO Director

DIN : 02262755 DIN : 07961388

JITENDRA AGARWAL AJAY SETH SANJEEV GROVERPartner Chief Financial Officer Chief General Manager

& Company Secretary

Place: New Delhi ICSI Membership No : F3788

Date: 27th April, 2018

133


Statement of Profit and Lossfor the year ended March 31, 2018



DIN : 02262755 DIN : 07961388


& Company Secretary



Particulars Notes

No.For the Year ended

31.03.2018For the Year ended

31.03.2017

I Revenue from operations 22 819,944 772,662

II Other income 23 20,455 23,001

III Total Income (I+II) 840,399 795,663 IV Expenses

Cost of materials consumed 24.1 449,413 426,296

Purchases of stock-in-trade 99,930 44,821

Changes in inventories of finished goods, work-in-progress and stock-in-trade 24.2 407 (3,801)

Excise duty 39 22,317 92,314

Employee benefits expense 25 28,338 23,310

Finance costs 26 3,457 894

Depreciation and amortisation expense 27 27,579 26,021

Other expenses 28 99,915 87,241

Vehicles / dies for own use (991) (1,036)

Total expenses (IV) 730,365 696,060 V Profit before tax (III - IV) 110,034 99,603 VI Tax expense

Current tax 29 33,495 23,356

Deferred tax 29 (679) 2,745

32,816 26,101

VII Profit for the period (V - VI) 77,218 73,502 VIII Other Comprehensive Income

A (i) Items that will not be reclassified to profit or loss

(a) gain / (loss) of defined benefit obligation 14.4 (196) (158)

(b) gain / (loss) on change in fair value of equity instruments 14.5 3,470 2,361

3,274 2,203

A (ii) Income tax relating to items that will not be reclassified to profit or loss 29.2 39 61

B (i) Items that will be reclassified to profit or loss

(a) effective portion of gain / (loss) on hedging instruments in a cash flow hedge 14.6 (2) (72)

(2) (72)

B (ii) Income tax relating to items that will be reclassified to profit or loss 29.2 1 25

Total Other Comprehensive Income (A (i+ii)+B(i+ii)) 3,312 2,217

IX Total Comprehensive Income for the period (VII + VIII) 80,530 75,719 Earnings per equity share (`) 31

Basic 255.62 243.32

Diluted 255.62 243.32


134


Financial Statements (Standalone) | Statement of Changes in Equity I Cash Flow Statement

Statement of Changes in Equityfor the year ended March 31, 2018

a. Equity share capital

AmountBalance at April 01, 2016 1,510 Changes in equity share capital during the year -

Balance at March 31, 2017 1,510 Changes in equity share capital during the year -

Balance at March 31, 2018 1,510

b. Other equity

Reserves and Surplus Items of other comprehensive income

Reserves

created on

amalgamation

Securities

premium

reserve

General

reserve

Retained

earnings

Equity instrument

through other

comprehensive

income

Effective

portion of cash

flow hedge

Total

Balance at April 01, 2016 9,153 4,241 29,309 250,037 4,545 47 297,332 Profit for the year - - - 73,502 - - 73,502

Addition on Amalgamation

(Refer note 40)

- - - 2,475 - - 2,475

Other comprehensive income

for the year, net of income tax

- - - (100) 2,364 (47) 2,217

Total comprehensive income for the year

- - - 75,877 2,364 (47) 78,194

Payment of dividend

(` 35 per share)

- - - (10,573) - - (10,573)

Tax on Dividend - - - (2,152) - - (2,152)

Balance at March 31, 2017 9,153 4,241 29,309 313,189 6,909 - 362,801 Profit for the year - - - 77,218 - - 77,218

Other comprehensive income

for the year, net of income tax

- - - (131) 3,444 (1) 3,312


- - - 77,087 3,444 (1) 80,530

Payment of dividend

(` 75 per share)

- - - (22,656) - - (22,656)

Tax on Dividend - - - (4,612) - - (4,612)

Balance at March 31, 2018 9,153 4,241 29,309 363,008 10,353 (1) 416,063




DIN : 02262755 DIN : 07961388


& Company Secretary



135


Cash Flow Statementfor the year ended March 31, 2018

Particulars Notes

No. For the year

ended 31.03.2018 For the year

ended 31.03.2017

A. Cash flow from Operating Activities: Profit before tax 110,034 99,603

Adjustments for:Depreciation and amortisation expense 27 27,579 26,021


Interest income 23 (679) (372)

Dividend income 23 (200) (129)

Net loss on sale / discarding of property, plant and equipment 28 545 632

Net gain on sale of investments in associates 23 - (209)

Net gain on sale of investments in debt mutual funds 23 (964) (615)

Fair valuation gain on investment in debt mutual funds 23 (18,612) (21,403)

Liabilities no longer required written back 22 (852) (35)

Unrealised foreign exchange (gain)/ loss 34 (320)

Operating Profit before Working Capital changes 120,342 104,067 Adjustments for changes in Working Capital : - (Increase)/decrease in loans (non-current) 7 1 1

- (Increase)/decrease in other financial assets (non-current) 9 (86) (7)

- (Increase)/decrease in other non-current assets 12 (22) (320)

- (Increase)/decrease in inventories 10 1,014 (1,301)

- (Increase)/decrease in trade receivables 8 (2,617) 1,237

- (Increase)/decrease in loans (current) 7 (5) 6

- (Increase)/decrease in other financial assets (current) 9 (1,788) 635

- (Increase)/decrease in other current assets 12 2,078 1,049

- Increase/(decrease) in non-current provisions 17 46 71

- Increase/(decrease) in other non-current liabilities 19 4,803 2,975

- Increase/(decrease) in trade payables 20 21,276 9,785

- Increase/(decrease) in other financial liabilities (current) 16 (1,261) 686

- Increase/(decrease) in current provisions 17 1,110 501

- Increase/(decrease) in other current liabilities 19 3,509 6,622

Cash generated from Operating Activities 148,400 126,007 - Income taxes paid (net) (30,550) (23,214)

Net Cash from / (used in) Operating Activities 117,850 102,793

B. Cash flow from Investing Activities:Payments for purchase of property, plant and equipment and capital work in progress 4 (38,918) (32,498)

Payments for purchase of intangible assets 5 - (1,388)

Proceeds from sale of property, plant and equipment 4 265 163

Proceeds from sale of investment in associate company 6 - 219

Proceeds from sale of debt mutual funds 6 425,643 118,395

Payments for purchase of debt mutual funds 6 (470,689) (177,155)

Interest received 23 678 356

Dividend received 23 200 129

Net Cash from / (used in) Investing Activities (82,821) (91,779)

136


Particulars Notes

No. For the year


ended 31.03.2017

C. Cash flow from Financing Activities:Proceeds from short term borrowings 15 1,108 4,836

Repayment of short term borrowings 15 (4,836) (774)

Repayment of long term borrowings 15 - (1,535)

Finance cost paid 26 (3,464) (1,095)

Payment of dividend on equity shares 14.4 (22,656) (10,573)

Related income tax 14.4 (4,612) (2,152)

Net Cash from / (used in) Financing Activities (34,460) (11,293)Net Increase/(Decrease) in cash & cash equivalents 569 (279)Cash and cash equivalents at the beginning of the year 130 384 Cash and cash equivalents at the beginning of the year (acquired pursuant to a scheme of amalgamation (refer note 40))

- 25

Cash and cash equivalents at the end of the year 699 130 Cash and cash equivalents comprises :Cash and cheques in hand 11 38 6

Balance with Banks 11 661 124

699 130

Cash Flow Statementfor the year ended March 31, 2018

Amendment to Ind AS 7 - Statement of Cash Flows Effective April 1, 2017, the Company adopted the amendment to Ind AS 7 - Statement of Cash Flows, which require the entities to

provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including

both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing

balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement. The adoption of

amendment did not have any impact on the financial statements.




DIN : 02262755 DIN : 07961388


& Company Secretary



Financial Statements (Standalone) | Cash Flow Statement I Notes

137


Notes to the Financial Statements

1. General Information

Maruti Suzuki India Limited ("The Company") is a public limited

company incorporated and domiciled in India, listed on the

Bombay Stock Exchange (BSE) and the National Stock Exchange

(NSE). The address of its registered office is #1, Nelson Mandela

Road, Vasant Kunj, New Delhi - 110070. The Company is a

subsidiary of Suzuki Motor Corporation, Japan. The principal

activities of the Company are manufacturing, purchase and sale of

motor vehicles, components and spare parts. The other activities

of the Company comprise facilitation of pre-owned car sales, fleet

management and car financing.

During the year, a Scheme of Amalgamation between the Company

and its seven wholly owned subsidiaries, by the names of Maruti

Insurance Business Agency Limited, Maruti Insurance Distribution

Services Limited, Maruti Insurance Agency Network Limited,

Maruti Insurance Agency Solutions Limited, Maruti Insurance

Agency Services Limited, Maruti Insurance Agency Logistics

Limited and Maruti Insurance Broker Limited became effective

w.e.f. the appointed date, i.e., April 1, 2016 on completion of all

required formalities on July 11, 2017 and approval of National

Company Law Tribunal.

2. Significant Accounting Policies

2.1 Statement of compliance The financial statements have been prepared as a going concern

in accordance with Indian Accounting Standards (Ind AS) notified

under the Section 133 of the Companies Act, 2013 ("the Act")

read with the Companies (Indian Accounting Standards) Rules,

2015 and other relevant provisions of the Act.

2.2 Basis of preparation and presentation The financial statements have been prepared on the historical

cost convention on accrual basis except for certain financial

instruments which are measured at fair value at the end of

each reporting period, as explained in the accounting policies

mentioned below. Historical cost is generally based on the

fair value of the consideration given in exchange of goods or

services.

All assets and liabilities have been classified as current or non-

current according to the Company’s operating cycle and other

criteria set out in the Act. Based on the nature of products and

the time between the acquisition of assets for processing and

their realisation in cash and cash equivalents, the Company has

ascertained its operating cycle as twelve months for the purpose

of current non-current classification of assets and liabilities.

The principal accounting policies are set out below.

2.3 Going concern The board of directors have considered the financial position of

the Company at 31st March 2018 and the projected cash flows

and financial performance of the Company for at least twelve

months from the date of approval of these financial statements as

well as planned cost and cash improvement actions, and believe

that the plan for sustained profitability remains on course.

The board of directors have taken actions to ensure that

appropriate long-term cash resources are in place at the date of

signing the accounts to fund the Company's operations.

2.4 Use of estimates and judgements The preparation of financial statements in conformity with Ind

AS requires management to make judgements, estimates and

assumptions that affect the application of accounting policies and

the reported amount of assets, liabilities, income, expenses and

disclosures of contingent assets and liabilities at the date of these

financial statements and the reported amount of revenues and

expenses for the years presented. Actual results may differ from

the estimates.

Estimates and underlying assumptions are reviewed at each

balance sheet date. Revisions to accounting estimates are

recognised in the period in which the estimates are revised and

future periods affected.

In particular, information about significant areas of estimation

uncertainty and critical judgements in applying accounting policies

that have the most significant effect on the amounts recognised in

the financial statements are included in the following notes:

Note 32 : Provision for employee benefits

Note 17 & 38 : Provision for litigations

Note 17 : Provision for warranty and product recall

Note 4 : Property, Plant and Equipment - Useful

economic life

2.5 Revenue recognition Revenue is measured at the fair value of the consideration

received or receivable. Amounts disclosed as revenue are

inclusive of excise duty and net of returns, trade allowances, sales

incentives, goods & service tax and value added taxes.

The Company recognises revenue when the amount of revenue

and its related cost can be reliably measured and it is probable

that future economic benefits will flow to the entity and specific

criteria in relation to significant risk and reward and degree of

managerial involvement associated with ownership or effective

control have been met for each of the Company's activities as

described below. The Company bases its estimates on historical

results, taking into consideration the type of customer, the type of

transactions and the specifics of each arrangement.

2.5.1 Sale of goods

Domestic and export sales are accounted on transfer of

significant risks and rewards to the customer and also no

continuing involvement of management to the degree associated

with ownership nor effective control over the goods sold which

takes place on dispatch of goods from the factory and the port

respectively.



Financial Statements (Standalone) | Notes

138

2.5.2 Income from services

Income from services are accounted over the period of rendering

of services.

2.5.3 Income from royalty

Revenue from royalty is recognised on an accrual

basis in accordance with the substance of the relevant

arrangements.

2.5.4 Dividend and interest income

Dividend income from investments is recognised when the

shareholders' right to receive payment has been established

(provided that it is probable that the economic benefits will flow

to the Company and the amount of income can be measured

reliably).

Interest income from a financial asset is recognised when it is

probable that the economic benefits will flow to the Company and

the amount of income can be measured reliably.

2.6 Leasing Leases are classified as finance leases whenever the terms of the

lease transfer substantially all the risks and rewards of ownership

to the lessee. All other leases are classified as operating

leases.

2.6.1 The Company as lessor

Amounts due from lessees under finance leases are recognised

as receivables at the amount of the Company's net investment

in the leases. Finance lease income is allocated to accounting

periods so as to reflect a constant periodic rate of return on the

Company's net investment outstanding in respect of the leases.

Rental income from operating leases is recognised on a straight-

line basis over the term of the relevant lease. Where the rentals

are structured solely to increase in line with expected general

inflation to compensate for the Company's expected inflationary

cost increases, such increases are recognised in the period in

which such benefits accrue.

2.6.2 The Company as lessee

Assets held under finance leases are initially recognised as assets

of the Company at their fair value at the inception of the lease

or, if lower, at the present value of the minimum lease payments.

The corresponding liability to the lessor is included in the balance

sheet as a finance lease obligation.

Lease payments are apportioned between finance expenses

and reduction of the lease obligation so as to achieve a constant

rate of interest on the remaining balance of the liability. Finance

expenses are recognised immediately in profit or loss, unless

they are directly attributable to qualifying assets, in which case

they are capitalised in accordance with the Company's general

policy on borrowing costs (see note 2.8 below).

Rental expense from operating leases is recognised on a straight-



inflation to compensate for the lessor's expected inflationary cost

increases, such increases are recognised in the period in which

such benefits accrue.

Upfront amount paid for land taken on lease is amortised over the

period of lease.

2.7 Foreign currencies 2.7.1 Functional and presentation currency

Items included in the financial statements are measured using the

currency of the primary economic environment in which the entity

operates (‘the functional currency’). The financial statements are

presented in Indian rupee (`), which is the Company’s functional

and presentation currency.

2.7.2 Transactions and balances

Foreign currency transactions are translated into the functional

currency using the exchange rates at the dates of the transactions.

Foreign exchange gains and losses resulting from the settlement

of such transactions and from the translation of monetary assets

and liabilities denominated in foreign currencies at year end

exchange rates are generally recognised in profit or loss. They

are deferred in equity if they relate to qualifying cash flow hedges.

2.8 Borrowing costs Borrowing costs directly attributable to the acquisition,

construction or production of qualifying assets, which are assets

that necessarily take a substantial period of time to get ready for

their intended use or sale, are added to the cost of those assets,

until such time as the assets are substantially ready for their

intended use or sale.

Interest income earned on the temporary investment of surplus

funds out of specific borrowings pending their expenditure on

qualifying assets are deducted from the borrowing costs eligible

for capitalisation.

All other borrowing costs are recognised in profit or loss in the

period in which they are incurred.

2.9 Employee benefits 2.9.1 Short-term obligations

Liabilities for wages and salaries including non-monetary benefits

that are expected to be settled within the operating cycle after

the end of the period in which the employees render the related

services are recognised in the period in which the related services

are rendered and are measured at the undiscounted amount

expected to be paid.

2.9.2 Other long-term employee benefit obligations

Liabilities for leave encashment and compensated absences

which are not expected to be settled wholly within the operating

cycle after the end of the period in which the employees render



139

the related service are measured at the present value of the

estimated future cash outflows which is expected to be paid using

the projected unit credit method. The benefits are discounted

using the market yields at the end of the reporting period on

Government bonds that have terms approximating to the terms of

the related obligation. Remeasurements as a result of experience

adjustments and changes in actuarial assumptions are recognised

in profit or loss.

2.9.3 Post-employment obligations

Defined benefit plans

The Company has defined benefit plans namely gratuity,

provident fund and retirement allowance for employees. The

gratuity fund and provident fund are recognised by the income

tax authorities and are administered through trusts set up by the

Company. Any shortfall in the size of the fund maintained by the

trust is additionally provided for in profit or loss.

The liability or asset recognised in the balance sheet in respect of

gratuity plans is the present value of the defined benefit obligation

at the end of the reporting period less the fair value of plan assets.

The defined benefit obligation is calculated annually by actuaries

using the projected unit credit method.

The present value of the defined benefit obligation is determined

by discounting the estimated future cash outflows by reference to

market yields at the end of the reporting period on government

bonds that have terms approximating to the terms of the related

obligation.

The net interest cost is calculated by applying the discount rate to

the net balance of the defined benefit obligation and the fair value

of plan assets. This cost is included in employee benefit expense

in profit or loss.

Remeasurement gains and losses arising from experience


in the period in which they occur, directly in other comprehensive

income. They are included in retained earnings in the statement of

changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation

resulting from plan amendments or curtailments are recognised

immediately in profit or loss as past service cost.

Defined contribution plans

The Company has defined contribution plans for post-employment

benefit namely the superannuation fund which is recognised by

the income tax authorities. This fund is administered through a

trust set up by the Company and the Company’s contribution

thereto is charged to profit or loss every year. The Company

has no further payment obligations once the contributions have

been paid. The Company also maintains an insurance policy to

fund a post-employment medical assistance scheme, which is a

defined contribution plan. The Company’s contribution to State

Plans namely Employees’ State Insurance Fund and Employees’

Pension Scheme are charged to the statement of profit and loss

every year.

Termination benefits

A liability for the termination benefit is recognised at the earlier

of when the Company can no longer withdraw the offer of the

termination benefit and when the Company recognises any

related restructuring costs.

2.10 Taxation Income tax expense represents the sum of the tax currently

payable and deferred tax.

2.10.1 Current tax

The tax currently payable is based on taxable profit for the

year. Taxable profit differs from 'profit before tax' as reported in

the statement of profit and loss because of items of income or

expense that are taxable or deductible in other years and items

that are never taxable or deductible. The Company's current tax is

calculated using tax rates that have been enacted or substantively

enacted by the end of the reporting period.

2.10.2 Deferred tax

Deferred tax is recognised on temporary differences between the

carrying amounts of assets and liabilities in the financial statements

and the corresponding tax bases used in the computation of taxable

profits. Deferred tax liabilities are recognised for all taxable temporary

differences. Deferred tax assets are recognised for all deductible

temporary differences and incurred tax losses to the extent that it

is probable that taxable profits will be available against which those

deductible temporary differences can be utilised. Such deferred tax

assets and liabilities are not recognised if the temporary difference

arises from the initial recognition (other than in a business combination)

of assets and liabilities in a transaction that affects neither the taxable

profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of

each reporting period and reduced to the extent that it is no longer

probable that sufficient taxable profits will be available to allow all or

part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that

are expected to apply in the period in which the liability is settled or

the asset realised, based on tax rates (and tax laws) that have been

enacted or substantively enacted by the end of the reporting period

The measurement of deferred tax liabilities and assets reflects the

tax consequences that would follow from the manner in which the

Company expects, at the end of the reporting period, to recover or

settle the carrying amount of its assets and liabilities.

2.10.3 Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss,

except when they relate to items that are recognised in other




140

comprehensive income or directly in equity, in which case, the

income taxes are also recognised in other comprehensive income

or directly in equity respectively.

2.11 Property, plant and equipment Property, plant and equipment are stated at cost of acquisition

or construction less accumulated depreciation less accumulated

impairment, if any. Freehold land is measured at cost and is not

depreciated.

Such assets are classified to the appropriate categories of

property, plant and equipment when completed and ready for

intended use.

Subsequent costs are included in the asset's carrying amount or

recognised as a separate asset, as appropriate, only when it is

probable that future economic benefits associated with the item

will flow to the Company and the cost of the item can be measured

reliably. The carrying amount of any component accounted for as

a separate asset is derecognised when replaced. Other repairs

and maintenance of revenue nature are charged to profit or loss

during the reporting period in which they are incurred.

An item of property, plant and equipment is derecognised upon

disposal or when no future economic benefits are expected to

arise from continued use of asset. Any gain or loss arising on the

disposal or retirement of an item of property, plant and equipment

is determined as the difference between the sales proceeds and

the carrying amount of asset and recognised in profit or loss.

Depreciation methods, estimated useful lives and residual

value

Depreciation is calculated using the straight-line method on a pro-

rata basis from the month in which each asset is put to use to

allocate their cost, net of their residual values, over their estimated

useful lives.

Estimated useful life of assets are as follows which is based on

technical evaluation of the useful lives of the assets:

Building 3-60 years

Plant and machinery other than Dies and Jigs 8-11 years

Dies and jigs 5 years

Electronic data processing equipment 3 years

Furniture and fixtures 10 years

Office appliances 5 years

Vehicles 8 years

The assets' residual values, estimated useful lives and depreciation

method are reviewed at the end of each reporting period, with the

effect of any changes in estimate accounted for on a prospective

basis.

All assets, the individual written down value of which at the

beginning of the year is ` 5,000 or less, are depreciated at the

rate of 100%. Assets purchased during the year costing ` 5,000

or less are depreciated at the rate of 100%.

Gains and losses on disposal are determined by comparing

proceeds with carrying amount and are credited / debited to profit

or loss.

Freehold land and Leasehold land in the nature of perpetual lease

is not amortised.

2.12 Intangible assets 2.12.1 Intangible assets acquired separately

Lump sum royalty and engineering support fee is carried at cost

which is incurred and stated in the relevant licence agreement

with the technical knowhow / engineering support provider less

accumulated amortisation and accumulated impairment losses.

Amortisation is recognised on a straight line basis over their

estimated useful lives. The estimated useful lives and amortisation

method are reviewed at end of each reporting period, with the

effect of any changes in estimate being accounted for on a

prospective basis.

2.12.2 Amortisation methods and useful lives

Lump sum royalty and engineering support fee is amortised on

a straight line basis over its estimated useful life i.e. 5 years from

the start of production of the related model. An intangible asset

is derecognised when no future economic benefits are expected

from use.

2.13 Impairment of tangible and intangible assets At the end of each reporting period, the Company reviews the

carrying amounts of its tangible and intangible assets to determine

whether there is any indication that those assets have suffered

an impairment loss. If any such indication exists, the recoverable

amount of the asset is estimated in order to determine the extent

of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs of

disposal and value in use. In assessing value in use, the estimated

future cash flows are discounted to their present value using a

pre-tax discount rate that reflects current market assessments

of the time value of money and the risks specific to the asset for

which the estimates of future cash flows have not been adjusted.

2.14 Inventories Inventories are valued at the lower of cost, determined on the

weighted average basis and net realisable value.

The cost of finished goods and work in progress comprises

raw materials, direct labour, other direct costs and appropriate

proportion of variable and fixed overhead expenditure, the latter

being allocated on the basis of normal operating capacity. Cost

of inventories also include all other costs incurred in bringing

the inventories to their present location and condition. Costs of

purchased inventory are determined after deducting rebates



141

and discounts. Net realisable value is the estimated selling price

in the ordinary course of business, less the estimated costs of

completion and the estimated costs necessary to make the sale.

Machinery spares (other than those supplied along with main

plant and machinery, which are capitalised and depreciated

accordingly) are charged to profit or loss on consumption except

those valued at ` 5,000 or less individually, which are charged to

revenue in the year of purchase.

2.15 Provisions and contingencies Provisions: Provisions are recognised when there is a present

obligation as a result of a past event and it is probable that an

outflow of resources embodying economic benefits will be

required to settle the obligation and there is a reliable estimate

of the amount of the obligation. Provisions are determined by

discounting the expected future cash flows at a pre tax rate that

reflects current market assessment of the time value of money and

the risks specific to the liability.

Contingent Liabilities: Contingent liabilities are disclosed when

there is a possible obligation arising from past events, the

existence of which will be confirmed only by the occurrence or

non occurrence of one or more uncertain future events not wholly

within the control of the Company or a present obligation that

arises from past events where it is either not probable that an

outflow of resources will be required to settle or a reliable estimate

of the amount cannot be made.

2.16 Financial instruments A financial instrument is any contract that gives rise to a financial

asset of one entity and a financial liability or equity instrument

of another entity. Financial assets and financial liabilities are

recognised when the Company becomes a party to the contractual

provisions of the instruments.

Financial assets and financial liabilities are initially measured at

fair value. Transaction costs that are directly attributable to the

acquisition or issue of financial instruments (other than financial

assets and financial liabilities at fair value through profit or loss)

are added to or deducted from the fair value of the financial

assets or financial liabilities, as appropriate, on initial recognition.

Transaction costs directly attributable to the acquisition of

financial assets or financial liabilities at fair value through profit

or loss are recognised immediately in profit or loss. Subsequently,

financial instruments are measured according to the category in

which they are classified.

2.17 Financial assets All purchases or sales of financial assets are recognised and

derecognised on a trade date basis. Regular way purchases

or sales are purchases or sales of financial assets that require

delivery of assets within the time frame established by regulation

or convention in the marketplace.

All recognised financial assets are subsequently measured in their

entirety at either amortised cost or fair value, depending on the

classification of the financial assets.

2.17.1 Classification of financial assets

Classification of financial assets depends on the nature and

purpose of the financial assets and is determined at the time of

initial recognition.

The Company classifies its financial assets in the following

measurement categories:

• those to be measured subsequently at fair value (either

through other comprehensive income, or through profit or loss),

and

• those measured at amortised cost

The classification depends on the entity’s business model for

managing the financial assets and the contractual terms of the

cash flows.

A financial asset that meets the following two conditions is

measured at amortised cost unless the asset is designated at fair

value through profit or loss under the fair value option:

• Business model test : the objective of the Company's business

model is to hold the financial asset to collect the contractual cash

flows.

• Cash flow characteristic test : the contractual term of the

financial asset give rise on specified dates to cash flows that are

solely payments of principal and interest on the principal amount

outstanding.


measured at fair value through other comprehensive income

unless the asset is designated at fair value through profit or loss

under the fair value option:

• business model test : the financial asset is held within a business

model whose objective is achieved by both collecting cash flows

and selling financial assets.

• cash flow characteristic test : the contractual term of the

financial asset gives rise on specified dates to cash flows that are


outstanding.

All other financial assets are measured at fair value through profit

or loss.

2.17.2 Investments in equity instrument at fair value through

other comprehensive income (FVTOCI)

On initial recognition, the Company can make an irrevocable

election (on an instrument by instrument basis) to present the




142

subsequent changes in fair value in other comprehensive income

pertaining to investments in equity instrument. This election

is not permitted if the equity instrument is held for trading.

These elected investments are initially measured at fair value

plus transaction costs. Subsequently, they are measured at

fair value with gains / losses arising from changes in fair value

recognised in other comprehensive income. This cumulative

gain or loss is not reclassified to profit or loss on disposal of the

investments.

The Company has equity investments in certain entities which

are not held for trading. The Company has elected the fair value

through other comprehensive income irrevocable option for all

such investments. Dividend on these investments are recognised

in profit or loss.

2.17.3 Equity investment in subsidiaries, associates and joint

ventures

Investments representing equity interest in subsidiaries,

associates and joint ventures are carried at cost less any provision

for impairment. Investments are reviewed for impairment if events

or changes in circumstances indicate that the carrying amount

may not be recoverable.

2.17.4 Financial assets at fair value through profit or loss

(FVTPL)

Investment in equity instrument are classified at fair value through

profit or loss, unless the Company irrevocably elects on initial

recognition to present subsequent changes in fair value in other

comprehensive income for investments in equity instruments

which are not held for trading.

Financial assets that do not meet the amortised cost criteria

or fair value through other comprehensive income criteria are

measured at fair value through profit or loss. A financial asset

that meets the amortised cost criteria or fair value through other

comprehensive income criteria may be designated as at fair value

through profit or loss upon initial recognition if such designation

eliminates or significantly reduces a measurement or recognition

inconsistency that would arise from measuring assets and

liabilities or recognising the gains or losses on them on different

bases.

Investments in debt based mutual funds are measured at fair

value through profit and loss.

Financial assets which are fair valued through profit or loss are

measured at fair value at the end of each reporting period, with

any gains or losses arising on remeasurement recognised in profit

or loss.

2.17.5 Trade receivables

Trade receivables are recognised initially at fair value and

subsequently measured at amortised cost less provision for

impairment.

2.17.6 Cash and cash equivalents

In the cash flow statement, cash and cash equivalents includes

cash in hand, cheques and drafts in hand, balances with bank and

deposits held at call with financial institutions, short-term highly

liquid investments with original maturities of three months or

less that are readily convertible to known amounts of cash and

which are subject to an insignificant risk of changes in value. Bank

overdrafts are shown within borrowings in current liabilities in the

balance sheet and forms part of financing activities in the cash

flow statement. Book overdraft are shown within other financial

liabilities in the balance sheet and forms part of operating activities

in the cash flow statement.

2.17.7 Impairment of financial assets

The Company assesses impairment based on expected credit

losses (ECL) model to the following :

• financial assets measured at amortised cost

• financial assets measured at fair value through other

comprehensive income

Expected credit loss are measured through a loss allowance at an

amount equal to :

• the twelve month expected credit losses (expected credit

losses that result from those default events on the financial

instruments that are possible within twelve months after the

reporting date); or

• full life time expected credit losses (expected credit losses that

result from all possible default events over the life of the financial

instrument).

For trade receivables or any contractual right to receive cash or

another financial asset that result from transactions that are within

the scope of Ind AS 18, the Company always measures the loss

allowance at an amount equal to lifetime expected credit losses.

2.17.8 Derecognition of financial assets

A financial asset is derecognised only when

• The Company has transferred the rights to receive cash flows

from the financial asset or

• Retains the contractual rights to receive the cash flows of the

financial asset, but assumes a contractual obligation to pay the

cash flows to one or more recipients.

2.17.9 Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign

currency is determined in that foreign currency and translated

at the exchange rate at the end of each reporting period. For

foreign currency denominated financial assets measured at

amortised cost or fair value through profit or loss the exchange

differences are recognised in profit or loss except for those which



143

are designated as hedge instrument in a hedging relationship.

Further change in the carrying amount of investments in equity

instruments at fair value through other comprehensive income

relating to changes in foreign currency rates are recognised in

other comprehensive income.

2.18 Financial liabilities and equity instruments 2.18.1 Classification of debt or equity

Debt or equity instruments issued by the Company are classified

as either financial liabilities or as equity in accordance with the

substance of the contractual arrangements and the definitions of

a financial liability and an equity instrument.

2.18.2 Equity instruments

An equity instrument is any contract that evidences a residual

interest in the assets of an entity after deducting all of its liabilities.

Equity instruments issued by the Company are recognised at the

proceeds received, net of direct issue costs.

2.18.3 Financial liabilities

All financial liabilities are subsequently measured at amortised

cost using the effective interest rate method or at fair value

through profit or loss.

2.18.3.1 Trade and other payables

Trade and other payables represent liabilities for goods or

services provided to the Company prior to the end of financial

year which are unpaid.

2.18.3.2 Borrowings

Borrowings are initially recognised at fair value, net of transaction

costs incurred. Borrowings are subsequently measured at

amortised cost. Any difference between the proceeds (net of

transaction costs) and the redemption amount is recognised in

profit or loss over the period of the borrowings using the effective

interest rate method.

Borrowings are removed from the balance sheet when the

obligation specified in the contract is discharged, cancelled

or expired. The difference between the carrying amount of a

financial liability that has been extinguished or transferred to

another party and the consideration paid, including any non-cash

assets transferred or liabilities assumed, is recognised in profit or

loss.

2.18.3.3 Foreign exchange gains or losses

For financial liabilities that are denominated in a foreign currency

and are measured at amortised cost at the end of each reporting

period, the foreign exchange gains and losses are determined

based on the amortised cost of the instruments and are

recognised in profit or loss.

The fair value of financial liabilities denominated in a foreign

currency is determined in that foreign currency and translated at

the exchange rate at the end of the reporting period. For financial

liabilities that are measured as at fair value through profit or loss,

the foreign exchange component forms part of the fair value gains

or losses and is recognised in profit or loss.

2.18.3.4 Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only

when, the Company's obligations are discharged, cancelled or

have expired.

2.19 Derivative financial instruments The Company enters into foreign exchange forward contracts

and certain other derivative financial instruments to manage its

exposure to foreign exchange rate risks and commodity price

risks. Further details of derivative financial instruments are

disclosed in note 33.

Derivatives are initially recognised at fair value at the date the

derivative contracts are entered into and are subsequently

remeasured to their fair value at the end of each reporting

period. Derivatives are carried as financial assets when the fair

value is positive and as financial liabilities when the fair value is

negative. The resulting gain or loss is recognised in profit or loss

immediately unless the derivative is designated and effective as a

hedging instrument which is recognised in other comprehensive

income (net of tax) and presented as a separate component of

equity which is later reclassified to profit or loss when the hedge

item affects profit or loss.

2.19.1 Embedded derivatives

Derivatives embedded in a host contract that is an asset within

the scope of Ind AS 109 are not separated. Financial assets with

embedded derivatives are considered in their entirety when

determining whether their cash flows are solely payment of

principal and interest.

Derivatives embedded in all other host contract are separated

only if the economic characteristics and risks of the embedded

derivative are not closely related to the economic characteristics

and risks of the host and are measured at fair value through

profit or loss. Embedded derivatives closely related to the host

contracts are not separated.

2.20 Hedge accounting The Company designates certain hedging instruments, in respect

of foreign currency risk, as either fair value hedges or cash flow

hedges. Hedges of foreign exchange risk on firm commitments

are accounted for as cash flow hedges.

At the inception of the hedge relationship, the entity documents

the relationship between the hedging instrument and the hedged

item, along with its risk management objectives and its strategy

for undertaking various hedge transactions. Furthermore, at the

inception of the hedge and on an on-going basis, the Company

documents whether the hedging instrument is highly effective in

offsetting changes in fair values or cash flows of the hedged item

attributable to the hedged risk.




144

Changes in the fair value of these contracts that are designated

and effective as hedges of future cash flows are recognised in

other comprehensive income (net of tax) and the ineffective

portion is recognised immediately in the profit or loss. Amount

accumulated in equity are reclassified to the profit or loss in the

periods in which the forecasted transaction occurs.

Hedge accounting is discontinued when the hedging instrument

expires or is sold, terminated, or exercised, or no longer qualifies

for hedge accounting. For forecast transactions, any cumulative

gain or loss on the hedging instrument recognised in other equity

is retained there until the forecast transaction occurs.

Note 33 sets out details of the fair values of the derivative

instruments used for hedging purposes.

2.21 Offsetting Financial Instruments Financial assets and liabilities are offset and the net amount is

reported in the balance sheet where there is a legally enforceable

right to offset the recognised amounts and there is an intention

to settle on a net basis or realise the asset and settle the

liability simultaneously. The legally enforceable right must not

be contingent on future events and must be enforceable in the

normal course of business and in the event of default, insolvency

or bankruptcy of the Company or the counterparty.

2.22 Government Grant Government grants are recognised where there is

reasonable assurance that the Company will comply with the

conditions attaching to them and the grants will be received.

Government grants are recognised in statement of profit and

loss on a systematic basis over the periods in which the company

recognises as expense the related cost for which the grants are

intended to compensate.

2.23 Earning Per Share Basic earning per share has been computed by dividing the net

income by the weighted average number of shares outstanding

during the year. Diluted earning per share has been computed

using the weighted average number of shares and diluted potential

shares, except where the result would be anti-dilutive.

2.24 Dividends Final dividends on shares are recorded on the date of approval by

the shareholders of the Company.

2.25 Royalty The Company pays / accrues for royalty in accordance with the

relevant licence agreements.

2.26 Business combinations Acquisitions of subsidiaries and businesses are accounted

for using the acquisition method. Acquisition related costs

are recognized in profit or loss as incurred. The acquiree’s

identifiable assets, liabilities and contingent liabilities that meet

the conditions for recognition are recognized at their fair value

at the acquisition date, except certain assets and liabilities that

are required to be measured as per the applicable standard.

Purchase consideration in excess of the Company’s interest

in the acquiree’s net fair value of identifiable assets, liabilities

and contingent liabilities is recognized as goodwill. Excess of

the Company’s interest in the net fair value of the acquiree’s

identifiable assets, liabilities and contingent liabilities over the

purchase consideration is recognized, after reassessment of fair

value of net assets acquired, in the Capital Reserve.

Common control

A business combination involving entities or businesses

under common control is a business combination in which

all of the combining entities or businesses are ultimately

controlled by the same party or parties both before and after

the business combination and the control is not transitory.

Business combinations involving entities under common control

are accounted for using the pooling of interests method. The

net assets of the transferor entity or business are accounted at

their carrying amounts on the date of the acquisition subject to

necessary adjustments required to harmonise accounting policies.

Any excess or shortfall of the consideration paid over the share

capital of transferor entity or business is recognised as capital

reserve under equity.

2.27 Rounding of amounts All amounts disclosed in the financial statements and the

accompanying notes have been rounded off to the nearest million

as per the requirement of Schedule III of the Companies Act 2013,

unless otherwise stated.

3. Applicability of New and Revised Ind AS

3.1 Ministry of Corporate affairs has notified Ind AS 115 - Revenue

from Contracts with Customers, which is effective from April 1,

2018. The new standard outlines a single comprehensive control-

based model for revenue recognition and supersedes current

revenue recognition guidance based on risks on rewards. The

Company is evaluating the requirements of Ind AS 115 and its

effect on the financial statements.



145

3.2 Appendix B to Ind AS 21, Foreign Currency Transactions and

Advance Consideration: On March 28, 2018, Ministry of Corporate

Affairs ("MCA") has notified the Companies (Indian Accounting

Standards) Amendment Rules, 2018 containing Appendix B to Ind

AS 21, Foreign currency transactions and advance consideration

which clarifies the date of the transaction for the purpose of

determining the exchange rate to use on initial recognition

of the related asset, expense or income, when an entity has

received or paid advance consideration in a foreign currency.

The amendment is effective from April 1, 2018. The Company is

evaluating the requirements of Ind AS 21 and its effect on the


3.3 Amendments to Ind AS 12 - Recognition of Deferred Tax Assets for Unrealised LossesThe amendments clarify that an entity needs to consider whether

tax law restricts the sources of taxable profits against which it may

make deductions on the reversal of that deductible temporary

difference. Furthermore, the amendments provide guidance on

how an entity should determine future taxable profits and explain

the circumstances in which taxable profit may include the recovery

of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively.

However, on initial application of the amendments, the change

in the opening equity of the earliest comparative period may be

recognised in opening retained earnings (or in another component

of equity, as appropriate), without allocating the change between

opening retained earnings and other components of equity.

Entities applying this relief must disclose that fact.

These amendments are effective for annual periods beginning

on or after 1 April 2018. These amendments are not expected to

have material effect on Company’s financial statements

4. Property, Plant and Equipment and Capital Work-In-Progress

As at 31.03.2018

As at

31.03.2017

Carrying amount of Freehold Land 31,403 19,039

Leasehold Land ^ 525 525

Buildings 16,900 16,609

Plant & Machinery 78,439 90,389

Electronic Data Processing (EDP) Equipment 570 608

Furniture, Fixtures and Office Appliances 1,387 975

Vehicles 1,249 1,052

130,473 129,197 Capital work-in-progress 21,259 12,523

151,732 141,720

^ In the nature of perpetual lease




146

Freehold Land

Leasehold Land

Buildings Plant & Machinery

EDP Equipment

Furniture, Fixtures

and Office Appliances

Vehicles Total

Gross Carrying amountBalance at April 01, 2016 18,452 525 15,028 111,588 827 1,082 1,034 148,536 Addition 587 - 3,257 28,210 518 307 523 33,402 Addition on Amalgamation# - - 37 - - - - 37 Disposal / adjustments* - - (42) (965) (1) 2 (262) (1,268)Balance at March 31, 2017 19,039 525 18,280 138,833 1,344 1,391 1,295 180,707 Addition 12,364 - 1,491 12,949 382 664 692 28,542 Disposal / adjustments* - - (7) (1,013) (9) (2) (377) (1,408)Balance at March 31, 2018 31,403 525 19,764 150,769 1,717 2,053 1,610 207,841 Accumulated depreciation and impairment Balance at April 01, 2016

- - 714 25,523 344 194 130 26,905

Depreciation expenses - 956 23,341 392 224 163 25,076 Addition on Amalgamation# - - 2 - - - - 2 Disposal / adjustments* - (1) (420) - (2) (50) (473)Balance at March 31, 2017 - - 1,671 48,444 736 416 243 51,510 Depreciation expenses - - 1,194 24,384 423 259 196 26,456 Disposal / adjustments* - - (1) (498) (12) (9) (78) (598)Balance at March 31, 2018 - - 2,864 72,330 1,147 666 361 77,368 Carrying amountBalance at April 01, 2016 18,452 525 14,314 86,065 483 888 904 121,631 Addition 587 - 3,257 28,210 518 307 523 33,402 Addition on Amalgamation# - - 35 - - - - 35 Disposal / adjustments* - - (41) (545) (1) 4 (212) (795)Depreciation expenses - - (956) (23,341) (392) (224) (163) (25,076)Balance at March 31, 2017 19,039 525 16,609 90,389 608 975 1,052 129,197 Addition 12,364 - 1,491 12,949 382 664 692 28,542 Disposal / adjustments* - - (6) (515) 3 7 (299) (810)Depreciation expenses - - (1,194) (24,384) (423) (259) (196) (26,456)Balance at March 31, 2018 31,403 525 16,900 78,439 570 1,387 1,249 130,473

4.1 Notes on property, plant and equipment 1 Immovable properties having carrying value of ` 27 million (as at 31.03.17 ` 27 million) are not yet registered in the name of the

Company.

2 Plant and Machinery includes a Gas Turbine jointly owned by the Company with its group companies and other companies (pro-

rata cost amounting to ` 374 million, carrying amount as at 31st March 2018 Nil (as at 31.03.17 Nil).

3 A part of freehold land of the Company situated at Gurugram, Manesar and Gujarat has been made available to its group companies

/ fellow subsidiary for their business purpose.

4 Based on technical evaluation and market considerations, the Company has, with effect from 1st April 2016, revised the estimated

useful life of dies & jigs, included in plant and machinery, from 4 years to 5 years. This had resulted in depreciation expense for the

financial year 2016-17 being lower by ` 2,411 million.

* Adjustment includes the intra-head re-grouping of amounts.

# Refer note 40



147

5. Intangible Assets

As at 31.03.2018

As at

31.03.2017

Carrying amount ofLumpsum royalty and engineering support fee 3,117 3,730

3,117 3,730

Lumpsum royalty and engineering support fee

Gross Carrying amountBalance at April 01, 2016 4,682

Addition 1,206

Balance at March 31, 2017 5,888 Addition 562

Adjustment (52)


Accumulated amortisation and impairmentBalance at April 01, 2016 1,213

Amortisation expenses 945

Balance at March 31, 2017 2,158 Amortisation expenses 1,123

Balance at March 31, 2018 3,281 Carrying amountBalance at April 01, 2016 3,469

Addition 1,206

Amortisation expenses (945)


Adjustment (52)

Amortisation expenses (1,123)


5.1 Notes on intangible assets Based on technical evaluation and market considerations, the Company has, with effect from 1st April 2016, revised the estimated

useful life of intangible asset from 4 years to 5 years. This had resulted in amortisation expense for the financial year 2016-17 being

lower by ` 307 million.




148

6. Investments

As at 31.03.2018

As at

31.03.2017

Non-currentInvestment in equity instruments

- Subsidiary companies# 77 77

- Associate companies 1,082 1,082

- Joint venture companies 152 152

- Others 10,771 7,301

Investment in preference shares - -

Investment in debt mutual funds# 328,647 254,410

340,729 263,022 CurrentInvestment in debt mutual funds# 12,173 21,788

12,173 21,788 Aggregate value of unquoted investments# 342,592 277,850

Aggregate value of quoted investments 10,360 7,010

Market value of quoted investments 13,710 10,274

Aggregate value of diminition other than temporary in value of investments 50 50

# See note 40.3

6.1 Investment in subsidiaries Break-up of investment in subsidiaries (carrying amount at cost)

As at 31.03.2018 As at 31.03.2017

Number Amount Number Amount

Unquoted investment (fully paid up)J.J Impex (Delhi) Private Limited (Face value of ` 10 each) 4,476,250 76 4,476,250 76

True Value Solutions Limited (Face value of ` 10 each) 50,000 1 50,000 1

Total aggregate unquoted investment 77 77



149

6.2 Investment in associates Break-up of investment in associates (carrying amount at cost)

As at 31.03.2018 As at 31.03.2017


Quoted investment (fully paid up) Bharat Seats Limited (Face value of ` 2 each) 4,650,000 5 4,650,000 5

Jay Bharat Maruti Limited (Face value of ` 5 each) 6,340,000 16 6,340,000 16

Machino Plastics Limited (Face value of ` 10 each) 941,700 5 941,700 5

Total aggregate quoted investment (A) 26 - 26 Aggregate market value of quoted investment 3,376 - 3,290

As at 31.03.2018 As at 31.03.2017


Unquoted investment (fully paid up) Caparo Maruti Limited (Face value of ` 10 each) 2,500,000 25 2,500,000 25

Hanon Climate Systems India Private Limited (Face value of ` 100 each) 518,700 52 518,700 52

Krishna Maruti Limited (Face value of ` 10 each) 670,000 7 670,000 7

SKH Metals Limited (Face value of ` 10 each) 2,645,000 49 2,645,000 49

Nippon Thermostat (India) Limited (Face value of ` 10 each) 125,000 1 125,000 1

Mark Exhaust Systems Limited (Face value of ` 10 each) 4,437,465 57 4,437,465 57

Bellsonica Auto Components India Private Limited (Face value of ` 100 each) 3,540,000 354 3,540,000 354

FMI Automotive Components Private Limited (Face value of ` 10 each) 44,100,000 441 44,100,000 441

Manesar Steel Processing India Private Limited (Face value of ` 10 each) 6,840,000 68 6,840,000 68

Maruti Insurance Broking Private Limited (Face value of ` 10 each) 231,275 2 231,275 2

Total aggregate unquoted investment (B) 1,056 1,056Total investments carrying value (A) + (B) 1,082 1,082

6.3 Investment in joint ventures Break-up of investment in joint ventures (carrying amount at cost)

As at 31.03.2018 As at 31.03.2017


Unquoted investment (fully paid up)Plastic Omnium Auto Inergy Manufacturing India Private Limited

(Face value of ` 10 each)

6,656,000 67 6,656,000 67

Magneti Marelli Powertrain India Limited

(Face value of ` 10 each)

8,550,000 85 8,550,000 85

Total aggregate unquoted investment 152 152




150

6.4 Other equity instruments Investment in equity instruments at fair value through other comprehensive income

As at 31.03.2018 As at 31.03.2017


Quoted investment (fully paid up)Asahi India Glass Limited (Face value of ` 1 each) 26,995,200 8,975 26,995,200 5,857

Sona Koyo Steering Systems Limited (Face value of ` 1 each) 13,800,000 1,359 13,800,000 1,127

Total aggregate quoted investment (i) 10,334 6,984

As at 31.03.2018 As at 31.03.2017


Unquoted investment (fully paid up)Denso India Private Limited (Face value of ` 10 each) 2,862,758 436 2,862,758 316

Total aggregate unquoted investment (ii) 436 316 Investment in equity shares of Section 8 CompanyInternational Automobile Centre of Excellence (Face value of ` 10 each) 100,000 1 100,000 1

Investment in equity shares of Section 8 Company (iii) 1 1 Investment in other equity instruments [i+ii+iii] 10,771 7,301

6.5 Investment in preference shares

As at 31.03.2018 As at 31.03.2017


Western Paques (India) Limited (Face value of ` 100 each) 500,000 50 500,000 50

Less: Provision for diminution in value (50) (50)

- -

6.6 Investment in debt mutual funds

As at 31.03.2018

As at

31.03.2017

Non current investment in debt mutual funds 328,647 254,410

Current investment in debts mutual funds 12,173 21,788



151

Description Face Value

(In `) Numbers as at As at

31.03.2018 31.03.2017 31.03.2018 31.03.2017

Current Non Current

Current Non

Current

Units of Debt Mutual Funds: Aditya Birla Sun Life Dynamic Bond Fund (Earlier name

Birla Sunlife Dynamic Bond Fund)

10 137,038,104 234,032,609 - 4,228 - 6,955

Aditya Birla Sun Life Fixed Term Plan - Series PA (1177) 10 45,000,000 - - 458 - -

Aditya Birla Sun Life Fixed Term Plan - Series PC (1169) 10 75,000,000 - - 761 - -

Aditya Birla Sun Life Fixed Term Plan - Series PE (1159) 10 30,000,000 - - 303 - -

Aditya Birla Sun Life Fixed Term Plan - Series PJ (1135) 10 25,000,000 - - 252 - -

Aditya Birla Sun Life Fixed Term Plan - Series PK (1132) 10 50,000,000 - - 503 - -

Aditya Birla Sun Life Fixed Term Plan - Series PO (1140) 10 45,000,000 - - 452 - -

Aditya Birla Sun Life Income Plus (Earlier name Birla Sunlife Income Plus) 10 35,314,419 35,314,419 - 2,785 - 2,668

Aditya Birla Sun Life Savings Fund (Earlier name Birla Sunlife Saving Fund) 100 6,332,053 6,332,053 - 2,178 - 2,027

Aditya Birla Sun Life Short Term Fund

(Earlier name Birla Sunlife Short Term Fund)

10 530,610,429 342,941,989 - 35,456 - 21,449

Aditya Birla Sun Life Treasury Optimizer Plan

(Earlier name Birla Sunlife Treasury Optimizer Plan)

100 1,141,130 1,141,130 - 256 - 240

Aditya Birla Sunlife Fixed Term Plan Series LG 1157 Day

(Earlier Birla Sunlife Fixed Term Plan Series LG 367 Days)

10 - 60,000,000 - - 766 -

Aditya Birla Sunlife Fixed Term Plan Series LV (1099 Days)

(Earlier name Birla Sunlife Fixed Term Plan Series LV 1099 Days)

10 - 20,000,000 - - 251 -

Aditya Birla Sunlife Fixed Term Plan Series MA (1099 Days)

(Earlier name Birla Sunlife Fixed Term Plan Series MA 1099 Days)

10 - 20,000,000 - - 248 -

Aditya Birla Sunlife Fixed Term Plan Series MD (1099 Days)

(Earlier name Birla Sunlife Fixed Term Plan Series MD 1099 Days)

10 - 50,000,000 - - 613 -

Aditya Birla Sunlife Fixed Term Plan Series MX (1128 Days)

(Earlier name Birla Sunlife Fixed Term Plan Series MX 1128 Days)

10 40,000,000 40,000,000 490 - - 457

Aditya Birla Sunlife Fixed Term Plan Series MY (1107 Days)

(Earlier name Birla Sunlife Fixed Term Plan Series MY 1107 Days)

10 50,000,000 50,000,000 606 - - 565

Aditya Birla Sunlife Govt. Securities Long Term

(Earlier name Birla Sunlife Govt. Securities Long Term)

10 - 11,596,220 - - - 579

Axis Banking & PSU Debt Fund

[Earlier name Axis Banking Debt Fund Direct Plan]

1,000 427,323 683,014 - 692 - 1,030

Axis Short Term Fund 10 513,976,615 333,002,109 - 10,095 - 6,128

DHFL Pramerica Banking & PSU Debt Fund

(Earlier name DWS Banking & PSU Debt Fund)

10 68,382,816 68,382,816 - 1,050 - 984

DHFL Pramerica FMP Series 82

(Earlier name DWS FMP Series 82)

10 - 25,000,000 - - 306 -



10 - 30,000,000 - - 359 -



10 50,000,000 50,000,000 638 - - 596



10 30,000,000 30,000,000 377 - - 352

DHFL Pramerica Gilt Fund

(Earlier name DWS Gilt Fund)

10 - 38,515,757 - - - 705

DHFL Pramerica Short Term Floating Rate Fund

(Earlier name DWS Treasury Fund Investment Plan)

10 45,187,833 45,187,833 - 878 - 821

DHFL Pramerica Ultra Short Term Fund

(Earlier name DWS Ultra Short Term Fund)

10 - 55,129,962 - - - 653

DSP Black Rock Short Term Fund 10 219,921,666 122,966,814 - 6,726 - 3,521

DSP Black Rock Strategic Bond Fund 1,000 1,044,115 1,705,807 - 2,149 - 3,395

DSP BlackRock FMP - Series 221 - 40M 10 30,000,000 - - 304 - -



DSP BlackRock Low Duration Fund

(Earlier namDSP Black Rock Ultra Short Term Fund)

10 168,710,431 168,710,431 - 2,151 - 2,009

Edelweiss Bond Fund

[Earlier name JP Morgan Active Income Bond Fund]

10 - 63,048,829 - - - 1,141

Edelweiss Liquid Fund

[Earlier name JP Morgan India Liquid Fund]

10 - 52,935,460 - - - 644

Frankin India Treasury Management Account -Super Inst Plan 1,000 1,796 - - - 4

HDFC FMP 370 D April 2014 (1) Series 31 10 - 20,000,000 - - 255 -


HDFC FMP 1111 Days November 2015 (1) Series 34 10 40,000,000 40,000,000 480 - - 449

HDFC FMP 1114D March 2016 (1) Series 35 10 250,000,000 250,000,000 - 2,944 - 2,750

HDFC FMP 1167 Days January 2016 (1) 10 180,000,000 180,000,000 - 2,148 - 2,007

HDFC FMP 369 Days February 2014 (2) Series 29 10 - 30,000,000 - - 390 -

HDFC FMP 370 Days March 2014 (1) Series 29 10 - 25,000,000 - - 324 -




152



31.03.2018 31.03.2017 31.03.2018 31.03.2017

Current Non Current

Current Non

Current

HDFC Floating Rate Income Fund Long Term Plan 10 - 65,075,825 - - - 1,872

HDFC Floating Rate Income Fund Short Term Plan Growth 10 92,433,479 92,433,479 - 2,808 - 2,621

HDFC FMP 1143D March 2018 (1) (39) 10 90,000,000 - 906 - -

HDFC FMP 1145D March 2018 (1) (39) 10 35,000,000 - 351 - -

HDFC FMP 1147D March 2018 (1) (39) 10 70,000,000 - 702 - -

HDFC FMP 1158D February 2018 (1) (39) 10 100,000,000 - 1,013 - -

HDFC High Interest Fund - Dynamic Plan 10 27,381,267 27,381,267 - 1,680 - 1,604

HDFC Income Fund 10 35,595,296 73,743,649 - 1,423 - 2,853

HDFC Medium Term Opportunity Fund 10 1,067,275,812 650,273,484 - 20,713 - 11,820

HDFC Short Term Opportunities Fund 10 811,217,527 726,177,638 - 15,675 - 13,144

HSBC Income Fund Short Term Plan 10 51,140,380 51,140,380 - 1,521 - 1,428

ICICI Prudential Banking and PSU Debt Fund 10 141,291,460 141,291,460 - 2,857 - 2,675

ICICI Prudential FMP Series 74 367 Days Plan D 10 - 60,000,000 - - 768 -

ICICI Prudential FMP Series 74 369 Days Plan F 10 - 40,000,000 - - 511 -

ICICI Prudential FMP Series 75- 1100 Days Plan H 10 - 15,000,000 - - 188 -

ICICI Prudential FMP Series 75- 1100 Days Plan O 10 - 15,000,000 - - 186 -

ICICI Prudential FMP Series 75 1100 Days Plan R 10 - 50,000,000 - - 614 -

ICICI Prudential FMP Series 75 1103 Days Plan P 10 - 35,000,000 - - 429 -

ICICI Prudential FMP Series 76 1100 Days Plan G 10 - 50,000,000 - - 599 -

ICICI Prudential FMP Series 76 1100 Days Plan T 10 - 35,000,000 - - 417 -

ICICI Prudential FMP Series 76 1103 Days Plan F 10 25,000,000 - - 300 -

ICICI Prudential FMP Series 76 1155 Days Plan K 10 30,000,000 30,000,000 386 - - 361

ICICI Prudential Flexible Income 100 52,869,340 11,858,050 - 17,716 - 3,707

ICICI Prudential FMP - Series 82 - 1135 Days Plan U 10 60,000,000 - - 602 - -

ICICI Prudential FMP - Series 82 - 1185 Days Plan I 10 125,000,000 - - 1,266 - -

ICICI Prudential FMP - Series 82 - 1185 Days Plan M 10 50,000,000 - - 505 - -

ICICI Prudential FMP - Series 82 - 1185 Days Plan N 10 30,000,000 - - 302 - -

ICICI Prudential FMP - Series 82 - 1199 Days Plan L 10 70,000,000 - - 709 - -

ICICI Prudential FMP - Series 82 - 1219 Days Plan D 10 25,000,000 - - 254 - -

ICICI Prudential Income Fund 10 18,227,388 48,662,288 - 1,055 - 2,653

ICICI Prudential Income Opportunities Fund 10 56,980,588 103,095,285 - 1,411 - 2,405

ICICI Prudential Interval Fund Series VI Annual Interval Plan C 10 - 10,760,176 - - 151 -

ICICI Prudential Short Term Plan 10 168,014,946 - - 6,301 - -

ICICI Prudential Ultra Short Term Direct Plan 10 859,569,584 713,250,632 - 15,724 - 12,205

IDFC Banking Debt Fund 10 - 91,140,256 - - - 1,275

IDFC Corporate Bond Fund 10 1,632,237,300 681,053,726 - 19,538 - 7,639

IDFC Dynamic Bond Fund 10 131,598,736 200,427,616 - 2,844 - 4,199

IDFC Fixed Term Plan - Series 140 10 50,000,000 - - 505 - -

IDFC Government Securities Fund Investment Plan 10 20,690,838 20,690,838 - 434 - 423

IDFC Money Manager Fund Investment Plan 10 71,175,883 134,077,826 - 1,933 - 3,452

IDFC Super Saver Income Fund Medium Term Plan 10 37,686,075 37,686,075 - 1,136 - 1,076

IDFC Super Saver Income Fund Short Term Plan 10 134,579,249 134,579,249 - 4,920 - 4,619

Invesco India FMP Sr 22 Plan H (427 Days)

[Earlier name Religare Invesco FMP Series 22 Plan H (427 Days)]

10 25,000,000 25,000,000 352 - 329 -



10 - 25,000,000 - - 319 -

Invesco India FMP Sr 25 Plan A (1098 Days)

[Earlier name Religare Invesco FMP Series 25 Plan A (1098 Days)]

10 - 25,000,000 - - 302 -

Invesco India FMP Sr 25 Plan F (1126Days)

[Earlier name Religare Invesco FMP Series 25 Plan F (1126 Days)]

10 30,000,000 30,000,000 382 - - 357

Invesco India FMP Sr 26 Plan C (1098 Days)

[Earlier name Religare Invesco FMP Series 26 (1098 Days)]

10 30,000,000 30,000,000 373 - - 348

Invesco India Short Term Fund

[Earlier name Religare Short Term Fund]

1,000 1,039,466 1,622,460 - 2,476 - 3,635

Invesco India Ultra Short Term Fund

[Earlier name Religare Invesco Ultra Short Term Fund]

1,000 - 1,254,342 - - - 1,593

JM Money Manager Fund Super Plus Plan Growth Option 10 37,591,347 37,591,347 - 936 - 876

Kotak Banking and PSU Debt Fund 10 48,998,089 - - 1,950 - -

Kotak Bond Fund [ Earlier name Kotak Bond Scheme Plan A] 10 42,480,285 84,088,525 - 2,103 - 4,016

Kotak Bond Short Term 10 464,019,598 268,906,154 - 15,627 - 8,508

Kotak FMP Series 142 10 - 35,000,000 - - 453 -

Kotak FMP Series 150 10 - 25,000,000 - - 328 -

Kotak FMP Series 151 10 - 25,000,000 - - 319 -

Kotak FMP Series 156 10 - 18,000,000 - - 229 -

Kotak FMP Series 158 10 - 25,000,000 - - 318 -



153



31.03.2018 31.03.2017 31.03.2018 31.03.2017

Current Non Current

Current Non

Current

Kotak FMP Series 159 10 - 32,700,000 - - 416 -

Kotak FMP Series 171 10 - 20,000,000 - - 239 -

Kotak FMP Series 176 10 25,000,000 25,000,000 312 - - 290

Kotak FMP Series 178 10 45,000,000 45,000,000 557 - - 517

Kotak FMP Series 219 - (1173D) 10 60,000,000 - - 605 - -



Kotak Treasury Advantage Fund 10 144,239,928 144,239,928 - 4,072 - 3,802

L & T Short Term Opportunities Fund 10 180,948,268 180,948,268 - 3,077 - 2,884

L& T Ultra Short Term Fund 10 - 55,748,239 - - - 818

Reliance Annual Interval Fund 10 250,434 - - - 78

Reliance Banking & PSU Debt Fund Direct Plan 10 275,291,993 275,291,993 - 3,471 - 3,257

Reliance Dynamic Bond Fund 10 132,568,584 132,568,584 - 3,181 - 3,049

Reliance Fixed Horizon Fund XXIX Series 10 10 30,000,000 30,000,000 363 - - 339

Reliance Fixed Horizon Fund XXIX Series 16 10 50,000,000 50,000,000 - 603 - 563



Reliance Fixed Horizon Fund -XXVI- Series 13 10 166,984 - - 586 -

Reliance Fixed Horizon Fund XXVI Series 17 10 - 34,000,000 - - 435 -

Reliance Fixed Horizon Fund XXVII Series 11 10 - 45,000,000 - - 552 -

Reliance Fixed Horizon Fund XXVIII Series 10 10 45,000,000 45,000,000 578 - - 539

Reliance Fixed Horizon Fund XXX Series 4 10 85,000,000 85,000,000 - 1,015 - 947

Reliance Floating Rate Fund Short Term 10 417,460,633 307,885,187 - 11,734 - 8,108

Reliance Income Fund 10 9,712,908 9,712,908 - 558 - 536

Reliance Money Manager Fund 1,000 517,148 517,148 - 1,261 - 1,177

Reliance Short Term Fund 10 712,836,928 712,835,497 - 24,012 - 22,526

Reliance Yearly Interval Fund Series 2 10 - 81,392,880 - - 1,157 -

Reliance Yearly Interval Fund Series 6 10 - 22,964,644 - - 318 -



SBI Debt Fund Series B-18 (1100 Days) 10 30,000,000 30,000,000 375 - - 351

SBI Debt Fund Series B-26 (1100 Days ) 10 30,000,000 30,000,000 363 - - 339



SBI Dynamic Bond Fund 10 160,943,391 160,943,391 - 3,543 - 3,405

SBI Short Term Debt Fund 10 150,936,462 150,936,462 - 3,094 - 2,903

SBI Ultra Short Term Debt Fund 1,000 1,529,671 1,529,671 - 3,445 - 3,224

Sundaram Fixed Term Plan GE Direct Growth 10 250,584 - - 423 -

Sundaram Fixed Term Plan GY 10 65,000,000 65,000,000 809 - - 755

Sundaram Fixed Term Plan HB 10 50,000,000 50,000,000 600 - - 561

Sundaram Money Fund 10 - 183,330,755 - - - 2,250

Sundaram Select Debt ST Asset Plan 10 29,803,693 - - 929 - -

Sundaram Ultra Short Term Fund 10 - 26,443,089 - - - 343

Sundaran Banking and PSU Debt Fund [Earlier name Sundaram Flexible Fund

Short Term Plan]

10 29,383,976 65,468,998 - 804 - 1,684

Tata Short Term Bond Fund 10 250,995,072 250,995,072 - 8,417 - 7,902

Tata Ultra Short Term Fund [Earlier name Tata Floater Fund] 1,000 1,093,981 1,093,981 - 2,907 - 2,715

UTI Bond Fund 10 33,079,932 53,181,546 - 1,806 - 2,765

UTI Fixed Term income fund series VIII -VII Direct Growth plan 10 9,959,130 - - 127 -

UTI Fixed Term Income Fund Series XIX IX 369 Days 10 - 54,995,921 - - 691 -

UTI Fixed Term Income Fund Series XIX VI 366 Days 10 - 25,000,000 - - 314 -

UTI Fixed Term Income Fund Series XIX XI 366 Days 10 - 33,039,648 - - 414 -

UTI Fixed Term income Fund Series XIX-III -Direct Growth 10 28,000,000 - - 353 -

UTI Fixed Term Income Fund Series XVII-XIII (369) Days 10 - 32,000,000 - - 417 -

UTI Fixed Term Income Fund Series XX VIII (1105 Days) 10 - 50,000,000 - - 613 -

UTI Fixed Term Income Fund Series XX X (1105 Days) 10 - 30,000,000 - - 367 -

UTI Fixed Term Income Fund Series XXI XI (1112 Days ) 10 50,000,000 50,000,000 639 - - 597

UTI Fixed Term Income Fund Series XXII XIV (1100 Days) 10 45,000,000 45,000,000 556 - - 518

UTI Fixed Term Income Fund Series XXIII- VII (1098) Days 10 35,000,000 35,000,000 423 - - 395

UTI Fixed Term Income Fund Series XXIII-III (1098 Days) 10 40,000,000 40,000,000 491 - - 458

UTI Fixed Term Income Fund- Series XXVIII - Plan IX - (1168 Days) 10 30,000,000 - - 304 - -

UTI Fixed Term Income Fund- Series XXVIII - Plan VI - (1190 Days) 10 25,000,000 - - 254 - -

UTI Fixed Term Income Fund- Series XXVIII - Plan XII - (1154 Days) 10 30,000,000 - - 302 - -

UTI Floating Rate Fund 1,000 705,166 705,166 - 2,053 - 1,917




154



31.03.2018 31.03.2017 31.03.2018 31.03.2017

Current Non Current

Current Non

Current

UTI Short Term Income Fund 10 543,283,611 - - 11,754 - -

UTI Treasury Advantage Fund 1,000 2,889,912 2,889,912 - 6,975 - 6,518

12,173 328,647 21,788 254,410

7. Loans (unsecured and considered good, unless otherwise stated)

As at 31.03.2018

As at

31.03.2017

Non Current Employee related loans and advances 1 2

Inter corporate deposits- unsecured considered doubtful 125 125

Provision for Intercorporate deposits (125) (125)

Others 1 1

2 3 CurrentEmployee related loans and advances 30 25

30 25

8. Trade Receivables

As at 31.03.2018

As at

31.03.2017

Unsecured - considered good 14,618 11,992

- considered doubtful 24 6

Provision for doubtful debts (24) (6)

14,618 11,992



155

8.1 The credit risk to the Company is limited since most of the sales are made against advances or letter of credit/bank guarantees

from banks of national standing. The credit period generally allowed on domestic sales varies from 30 to 45 days (excluding transit

period). The credit period on export sales varies on case to case basis, based on market conditions.

As at 31.03.2018

As at

31.03.2017

Age of receivables

Within the credit period 13,962 11,654

1-90 days past due 502 238


More than 180 days past due 68 31

14,618 11,992

9. Other Financial Assets (unsecured and considered good, unless otherwise stated)

As at 31.03.2018

As at

31.03.2017

Non Current Financial assets carried at amortised cost Security deposits 196 110

Others 128 128

324 238 CurrentFinancial assets carried at amortised cost Interest accrued - secured 1 1

- unsecured 21 20

Recoverable from related parties 2,464 624

Others - considered good 251 142

- considered doubtful - 4

Less: provision for doubtful assets - (4)

Financial assets carried at fair value Foreign currency and commodity forward contract not qualifying or not designated in hedge accounting

relationships

109 163

2,846 950




156

10. Inventories

As at 31.03.2018

As at

31.03.2017

Inventories (lower of cost and net realisable value) Raw materials 14,418 13,681

Work-in-progress 1,772 1,546

Finished goods manufactured

Vehicle 9,700 12,330

Vehicle spares and components 363 481

Traded goods

Vehicle spares and components 2,834 2,591

Stores and spares 1,475 1,142

Loose Tools 1,046 851

31,608 32,622 Inventory includes in transit inventory of: Raw materials 3,701 4,897

Stock in trade 53 64

The cost of inventories recognised as an expense during the year in respect of continuing operations was ` 614,876 million (previous

year ` 525,920 million).

The cost of inventories recognised as an expense includes ` 152 million (previous year ` 29 million) in respect of write-downs of

inventory to net realisable value.

The mode of valuation of inventories has been stated in note 2.14.

11. Cash and Bank Balances

As at 31.03.2018

As at

31.03.2017

Cash and cash equivalents:Balances with Banks* 161 124

Cheques, drafts in hand 37 5

Cash in hand 1 1

Deposits (less than 3 months orignial maturity period) 500 -

699 130 Other bank balances: Unclaimed dividend accounts 12 8

711 138 Cash and cash equivalents as per cash flow statement 699 130

*Refer note-40.3



157

12. Other Assets (unsecured and considered good, unless otherwise stated)

As at 31.03.2018

As at

31.03.2017

Non-current Capital advances - considered good* 6,573 4,043

Prepaid expenses and leases 5,481 3,929

Amount paid under protest / dispute 6,411 7,950

Claims - unsecured considered good 96 79

- unsecured considered doubtful 27 27

Less : provision for doubtful claims (27) (27)

Others 22 30

18,583 16,031 Current Balance with customs, port trust and other Government authorities 2,363 9,917

Claims 1,084 1,142

Prepaid expenses and leases 576 431

Balance with related parties 5,815 980

Others - considered good# 3,281 2,923


Less: provisions for doubtful balances (104) (92)

13,119 15,393

* Includes capital advance given to related parties as at 31.03.2018 ` 1,020 million (as at 31.03.2017: ` 622 million).

# Refer note-40.3

13. Equity Share Capital

As at 31.03.2018

As at

31.03.2017

Authorised share capital:3,751,000,000 equity shares of ` 5 each (as at 31.03.17: 3,751,000,000 equity shares of ` 5 each) 18,755 18,755

Issued, subscribed and fully paid up share capital comprises:302,080,060 equity shares of ` 5 each (as at 31.03.17: 302,080,060 equity shares of ` 5 each) 1,510 1,510

1,510 1,510

13.1 Rights, preference and restriction attached to shares The Company has one class of equity shares having a par value of ` 5 per share. Each shareholders is eligible for one vote per share

held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General

Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining

assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

13.2 Reconciliation of number of shares

As at 31.03.2018 As at 31.03.2017

Number of shares Amount Number of shares Amount

Balance as at the beginning of year 302,080,060 1,510 302,080,060 1,510

Balance as at the end of year 302,080,060 1,510 302,080,060 1,510




158

13.3 Details of shares held by the holding company

As at 31.03.2018 As at 31.03.2017


Suzuki Motor Corporation, Japan 169,788,440 849 169,788,440 849

169,788,440 849 169,788,440 849

13.4 Details of shares held by each shareholder holding more than 5% shares

As at 31.03.2018 As at 31.03.2017

Number of shares % holding Number of shares % holdimg

Suzuki Motor Corporation (the holding company) 169,788,440 56.21 169,788,440 56.21

Life Insurance Corporation of India 15,589,504 5.16 16,007,292 5.30

13.5 Shares allotted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding 31st March 2018) 13,170,000 equity shares of ` 5 each have been allotted as fully paid up during Financial Year 2012-13 to Suzuki Motor Corporation

pursuant to the Company's scheme of amalgamation with erstwhile Suzuki Powertrain India Limited.

14. Other Equity

As at 31.03.2018

As at

31.03.2017

General reserve 29,309 29,309

Securities premium reserve 4,241 4,241

Reserve created on amalgamation 9,153 9,153

Retained earnings* 363,008 313,189

Reserve for equity instruments through other comprehensive income 10,353 6,909

Cash flow hedging reserve (1) -

416,063 362,801

*Refer note-40.3

14.1 General reserve

Year ended 31.03.2018

Year ended

31.03.2017

Balance at the beginning of year 29,309 29,309

Amount transferred to general reserves - -

Balance at the end of year 29,309 29,309

The general reserve is created from time to time on transfer of profits from retained earnings. General reserve is created by transfer

from one component of equity to another and is not an item of other comprehensive income, items included in general reserve will not

be reclassified subsequently to profit and loss.



159

14.2 Securities premium reserve


Year ended

31.03.2017


Movement - -


14.3 Reserve created on amalgamation


Year ended

31.03.2017


Movement - -


This reserve was created on the basis of the scheme of amalgamation of erstwhile Suzuki Powertrain India Limited (SPIL) with the

Company as approved by the High Court of Delhi in the year ended 31st March 2013.

14.4 Retained earnings


Year ended

31.03.2017


Profit for the year 77,218 73,502

Addition due to amalgamation# - 2,475

Other comprehensive income arising from remeasurement of defined benefit obligation * (131) (100)


Tax on dividend (4,612) (2,152)


During the year, a dividend of ` 75 per share, total dividend ` 22,656 million (previous year : ` 35 per share, total dividend ` 10,573

million) was paid to equity shareholders.

The Board of Directors recommended a final dividend of ` 80 per share (nominal value of ` 5 per share) for the financial year 2017-

18. This dividend is subject to approval by the shareholders at the Annual General Meeting and has not been accounted as liability in

these financial statements. The total expected amount of cash outflow is ` 29,134 million including dividend distribution tax of ` 4,968

million.

* net of income tax of ` 65 million (previous year ` 58 million)

#Refer note-40.3




160

14.5 Reserve for equity instruments through other comprehensive income


Year ended

31.03.2017


Net fair value gain on investment in equity instruments at FVTOCI 3,470 2,361

Income tax on net fair value gain on investments in equity instruments at FVTOCI (26) 3


This reserves represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value

through other comprehensive income, net of amount reclassified to retained earnings when those assets have been disposed of.

14.6 Cash flow hedging reserve


Year ended

31.03.2017

Balance at the beginning of year - 47

Recognised / (released) during the year (2) (72)

Income tax related to above 1 25

Balance at the end of year (1) -

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of

designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on changes in fair

value of the designated portion of the hedging instruments that are recognised and accumulated under the heading of cash flow

hedging reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a basis

adjustment to the non-financial hedging item.

15. Borrowings

As at 31.03.2018

As at

31.03.2017

Current Unsecured Loans repayable on demand from banks - cash credit and overdraft 1,108 4,836

1,108 4,836

15.1 Summary of borrowing arrangements Loan repayable on demand from banks (Cash credit and Overdraft) amounting to ` 1,108 million at an interest rate of 8.30% to 8.70%,

repayable within 0-3 days (as at 31.03.17: ` 4,836 million at an interest rate of 7.25% to 10.50%, repayable within 0-5 days)

15.2 Breach of loan agreement There has been no breach of covenants mentioned in the loan agreements during the reporting periods.



161

16. Other Financial Liabilities

As at 31.03.2018

As at

31.03.2017

Current Financial liabilities carried at amortised cost Payables to capital creditors 9,881 8,308

Deposits from dealers, contractors and others 2,862 3,734

Interest accrued on security deposits 20 27

Unpaid dividend * 12 8

Book overdraft 548 914

Others 13 36

Derivatives designated and effective as hedging instruments carried at fair value Foreign currency forward contract designated in hedge accounting relationships 2 -

13,338 13,027

* There are no amounts due for payment to the Investor Education and Protection Fund under Section 125(1) of the Companies Act, 2013.

17. Provisions

As at 31.03.2018

As at

31.03.2017

Non-currentProvisions for employee benefits

Provision for retirement allowance 66 63

Other provisions

Provision for warranty & product recall 199 156

265 219 Current Provisions for employee benefits


Provision for compensated absences 2,916 2,540

Other provisions

Provision for litigation / disputes 2,118 1,734


5,600 4,490

Details of other provisions

Litigation / Dispute Warranty / Product recall

2017-2018 2016-2017 2017-2018 2016-2017

Balance as at the beginning of year 1,734 1,645 369 333

Addition during the year 455 100 1,243 687

Utilised during the year - - 850 651

Reversed during the year 71 11 - -

Balance as at the end of year 2,118 1,734 762 369




162


31.03.2018 31.03.2017 31.03.2018 31.03.2017

Classified as long term - - 199 156

Classified as short term 2,118 1,734 563 213

Total 2,118 1,734 762 369

Provisions for employee benefits The provision for employee benefits include compensated absences and retirement allowance.

Provision for warranty and product recall Provision is made for estimated warranty claims in respect of products sold which are still under warranty at the end of the reporting

period. These claims are expected to be settled as and when warranty claims will arise. Management estimates the provision based on

historical warranty claim information and any recent trends that may suggest future claims could differ from historical amounts.

Provision for litigation / disputes In the ordinary course of business, the Company faces claims by various parties. The Company assesses such claims and monitors

the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever necessary. The Company records

a liability for any claims where a potential loss probable and capable of being estimated and discloses such matters in its financial

statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the

financial statements but does not record a liability in its accounts unless the loss becomes probable (also refer to note 38).

18. Deferred Tax Balances

The following is the analysis of deferred tax assets / (liabilities) presented in the standalone balance sheet

As at 31.03.2018

As at

31.03.2017

Deferred tax assets 3,183 6,034

Deferred tax liabilities 8,772 10,696

Net deferred tax liabilities 5,589 4,662



163

Opening Balance

Recognised in other

equity **

Recognised in profit or

loss **

Recognised in OCI

Adjustments *

Closing Balance

2016-17Deferred tax assetsDeferred revenue 2,844 - (752) - - 2,092

Capital loss carry forwards # 1,879 56 - - (164) 1771

Expenses deductible in future years 1,237 - 94 58 272 1,661

Provision for litigation / dispute 189 - 75 - (8) 256

Provision for doubtful debts / advances 69 - 19 - - 88

Others 44 - 105 - 17 166

6,262 56 (459) 58 117 6,034Deferred tax liabilitiesProperty, plant and equipment and Intangible assets 4,695 - 122 - (42) 4,775

Investment in debt mutual funds 1,869 52 2,247 - - 4,168

Investment in equity instruments 31 - - (3) - 28

Other current & non-current assets 1,585 - (83) - 223 1,725

Cashflow hedges 25 - - (25) - -

8,205 52 2,286 (28) 181 10,696Net deferred tax liabilities 1,943 (4) 2,745 (86) 64 4,6622017-18Deferred tax assetsDeferred revenue 2,092 - (898) - - 1,194

Capital loss carry forwards 1,771 - (56) - (1,715) -

Expenses deductible in future years 1,661 - (147) - 54 1,568

Provision for litigation / dispute 256 - 4 - (56) 204

Provision for doubtful debts / advances 88 - 11 - - 99

Others 166 - (14) 65 (99) 118

6,034 - (1,100) 65 (1,816) 3,183Deferred tax liabilitiesProperty, plant and equipment and Intangible assets 4,775 - (1,217) - (188) 3,370

Investment in debt mutual funds 4,168 - (170) - - 3,998

Investment in equity instruments 28 - - 26 - 54

Other current & non-current assets 1,725 - (392) - 18 1,351

Cashflow hedges - - - (1) - (1)

10,696 - (1,779) 25 (170) 8,772Net deferred tax liabilities 4,662 - (679) (40) 1,646 5,589

* On account of reclassification to/from "Deferred Tax" from/to "Provision for Taxation"

# Deferred tax asset on capital loss carry forwards has been recognised as it is probable that future taxable profit will be available on gain on investment in debt

mutual funds, against which the tax losses can be utilised.

Note: Deferred tax assets and deferred tax liabilities have been offset as they are governed by the same taxation laws.

** Refer note-40.3




164

19. Other Liabilities

As at 31.03.2018

As at

31.03.2017

Non-currentDeferred revenue 15,853 11,050

15,853 11,050 CurrentAdvance from customers 11,506 9,392

Deferred revenue 4,651 3,584

Statutory dues 4,707 5,227

Others - 48

20,864 18,251

20. Trade Payables

As at 31.03.2018

As at

31.03.2017

Total outstanding dues of micro, small and medium enterprises* 711 832

Total outstanding dues of creditors other than micro, small and medium enterprises 104,259 82,841

104,970 83,673

Note:

The Company pays its vendors within 30 days and no interest during the year has been paid or is payable under the terms of the Micro,

Small and Medium Enterprises Development Act, 2006.

*Dues to micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of

intimation received from the “suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006.

21. Current Tax

As at 31.03.2018

As at

31.03.2017

Current tax assetsTaxes paid (net) 4,109 4,854

Current tax liabilities* Income tax payable (net) 8,541 7,987

*Refer Note-40.3



165

22. Revenue From Operations


Year ended

31.03.2017

Sale of products (including excise duty)* Vehicles 731,314 696,253

Spare parts / dies and moulds / components 72,051 65,155

803,365 761,408 Other operating revenues Income from services 4,910 3,917

Sale of scrap 4,986 3,830

Recovery of service charges 1,076 889

Liabilities no longer required written back 852 35

Rental income 427 370

Others 4,328 2,213

16,579 11,254 819,944 772,662

* Refer Note - 39

23. Other Income


Year ended

31.03.2017

Interest income on Bank deposits 6 12

Income tax refund 330 -

Receivables from dealers 337 343

Advance to vendors - 16

Others 6 1

679 372 Dividend income

Dividend from equity investments 200 129

200 129 Other gains and losses Net gain on sale of investments in associates - 209

Net gain on sale of investments in debt mutual funds 964 615

Fair valuation gain on investment in debt mutual funds 18,612 21,403

Net foreign exchange gains - 273

19,576 22,500 20,455 23,001

24. Material Consumed

24.1 Cost of materials consumed


Year ended

31.03.2017

Raw material at the beginning of year 13,681 17,343

Add: Purchases during the year 450,150 422,634

Less: Raw material at the end of year 14,418 13,681

449,413 426,296




166

24.2 Changes in inventories of finished goods, work-in-progress and stock-in-trade


Year ended

31.03.2017

Opening balances Work in progress 1,546 1,643


Vehicle 12,330 7,695


Traded goods


16,948 12,259 Closing balancesWork in progress 1,772 1,546


Vehicle 9,700 12,330


Traded goods


14,669 16,948

Excise duty on increase / (decrease) of finished goods (1,872) 888

407 (3,801)

25. Employee Benefits Expenses


Year ended

31.03.2017

Salaries and wages 24,941 20,772

Contribution to provident and other funds 1,311 952

Staff welfare expenses 2,086 1,586

28,338 23,310

26. Finance Costs


Year ended

31.03.2017

Interest costs: Foreign currency loans - 14

Cash credit and overdrafts 280 445

Deposits from dealers, contractors and others 629 434

Interest on enhanced compensation for land 2,548 -

3,457 893

Other borrowing costs - 1

3,457 894



167

27. Depreciation and Amortisation Expenses


Year ended

31.03.2017

Depreciation of property, plant and equipment 26,456 25,076

Amortisation of intangible assets 1,123 945

27,579 26,021

28. Other Expenses


Year ended

31.03.2017

Consumption of stores (refer to note 45) 2,362 2,241

Power and fuel [net of amount recovered ` 789 million (previous year ` 673 million)] 6,719 5,172

Rent (refer to note 35) 3,240 329

Repair and maintenance: plant and machinery 2,220 1,706

Repair and maintenance: building 560 445

Repair and maintenance: others 467 468

Insurance 163 150

Rates, taxes and fees 430 2,410

Royalty 37,672 38,480

Tools / machinery spares charged off 3,806 3,833

Exchange variation on foreign currency transactions (net) 909 -

Advertisement 8,686 8,324

Sales promotion 8,384 5,508

Warranty and product recall 1,243 687

Transportation and distribution expenses 7,684 5,182

Net loss on sale / discarding of property, plant and equipment 545 632

Corporate social responsibility expenses 1,251 895

Other miscellaneous expenses * 13,574 10,779

99,915 87,241

* Does not include any item of expenditure with a value of more than 1% of the revenue from operation

Note on Corporate Social Responsibility Gross amount required to be spent by the Company during the year ` 1,212 million.

Amount spent during the year on:


Year ended

31.03.2017

(i) Construction / acquisition of any asset

- in cash - -

- yet to be paid in cash - -

- - (ii) On purpose other than above

- in cash 1,251 895


1,251 895

(i) + (ii) 1,251 895




168

29. Income Taxes

29.1 Income tax recognised in profit or loss


Year ended

31.03.2017

Current tax

In respect of the current year 33,659 23,246

In respect of prior years (164) 110

33,495 23,356

Deferred taxIn respect of the current year (679) 2,745

(679) 2,745

Total income tax expense recognised in the current year 32,816 26,101

The income tax expense for the year can be reconciled to the accounting profit as follows


Year ended

31.03.2017

Profit before tax 110,034 99,603 Tax at the Indian Tax Rate of 34.608% ( previous year 34.608%) 38,081 34,471

Weighted deduction for research and development expenses (1,375) (2,215)

Additional deduction on plant and machinery - (1,505)

Differential tax rate on fair value gain on investments (2,330) (4,632)

Differential tax rate on capital gain on sale of investments (1,621) (402)

Effect of expenses that are not deductible in determining taxable profit 236 311

Others (11) (37)

32,980 25,991 Adjustments recognised in the current year in relation to the current tax of prior years (164) 110

Income tax expenses recognised in profit or loss 32,816 26,101

The tax rate used for the current year reconciliation above is the corporate tax rate of 34.608% (previous year 34.608%) payable by

corporate entities in India on taxable profits under the Indian tax law.

29.2 Income tax recognised in other comprehensive income


Year ended

31.03.2017

Deferred tax assets / (liabilities)Arising on income and expenses recognised in other comprehensive income Net fair value gain on investment in equity shares at FVTOCI (26) 3

Net gain on designated portion of hedging instruments in cash flow hedges 1 25

Remeasurement of defined benefit obligation 65 58

Total income tax recognised in other comprehensive income 40 86

Bifurcation of the income tax recognised in other comprehensive income into : -Items that will not be reclassified to profit or loss 39 61

Items that may be reclassified to profit or loss 1 25

40 86



169

30. Segment Information

The Company is primarily in the business of manufacturing, purchase and sale of motor vehicles, components and spare parts

("automobiles"). The other activities of the Company comprise facilitation of pre-owned car sales, fleet management and car financing.

The income from these activities is not material in financial terms but such activities contribute significantly in generating demand for

the products of the Company.

The Board of Directors of the Company, which has been identified as being the chief operating decision maker (CODM), evaluates the

Company's performance, allocate resources based on the analysis of the various performance indicator of the Company as a single

unit. Therefore there is no reportable segment for the Company.

30.1 Entity wide disclosure

Domestic Overseas Total

Revenue from operations2017-18 761,736 58,208 819,9442016-17 711,898 60,764 772,662

Non current segment assetsAs at 31.03.2018 161,422 - 161,422As at 31.03.2017 149,493 - 149,493

a) Domestic information includes sales and services to customers located in India.

b) Overseas information includes sales and services rendered to customers located outside India.

c) Non-current segment assets includes property, plant and equipment, capital work in progress, intangible assets and capital

advances

31. Earnings Per Share


Year ended

31.03.2017

Basic earnings per share (`) 255.62 243.32

Diluted earnings per share (`) 255.62 243.32

Profit attributable to the equity holders of the Company used in calculating basic earning per share and

diluted earning per share

77,218 73,502

Weighted average number of equity shares for the purpose of basic earning per share and diluted earning per

share (numbers)

302,080,060 302,080,060

32. Employee Benefit Plans

The various benefits provided to employees by the Company are as under:

A. Defined contribution plans a) Superannuation fund

b) Post employment medical assistance scheme

c) Employers contribution to Employee State Insurance Act 1948

d) Employers contribution to Employee's Pension Scheme 1995




170

During the year the Company has recognised the following amounts in the statement of profit and loss:


Year ended

31.03.2017

Employers contribution to Superannuation Fund * 82 77

Employers contribution on Post Employment Medical Assistance Scheme * 10 10

Employers contribution to Employee State Insurance * 72 14

Employers contribution on Employee's Pension Scheme 1995 * 268 266

* Included in 'Contribution to provident and other funds'

B. Defined benefit plans and other long term benefits a) Contribution to Gratuity Funds - Employee's Gratuity Fund

b) Leave encashment / compensated absence

c) Retirement allowance

d) Provident fund

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk. Investment risk

The probability or likelihood of lower returns as compared to the expected return on any particular investment.

Interest risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of

providing the above benefit and will thus result in an increase in the value of the liability.

Longevity risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants

both during and after employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future.

Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present

value of obligation will have a bearing on the plan's liability.

The principal assumptions used for the purpose of the actuarial valuations were as follows:

Provident Fund

Leave Encashment / Compensated

Absence

Employees Gratuity

Fund

Retirement Allowance

As at 31.03.18Discount rate(s) 8.55% 7.80% 7.80% 7.80%

Rate of increase in compensation level NA 7.00% 7.00% NA

Expected average remaining working lives of employees (years) 25 25 25 25






171

Components of expenses recognised in the statement of profit or loss in respect of:

Provident Fund


Absence

Employees Gratuity

Fund


Year ended 31.03.18Current service cost 551 326 127 12

Past service cost - - 201 -

Actuarial Loss / (gain) - 288 - -

Net interest cost / (income) on the net defined benefit liability / (asset) - 187 - 5

Expenses recognised in profit or loss 551 801 328 17 Year ended 31.03.17Current service cost 468 220 117 12

Past service cost - - - -



Expenses recognised in profit or loss 468 838 117 17

Components of expenses recognised in the other comprehensive income in respect of::

Provident Fund


Absence

Employees Gratuity

Fund


Year ended 31.03.18Actuarial (gains) / losses

- changes in demographic assumptions - - - -

- changes in financial assumptions - - (74) (1)

- experience variance - - 225 (13)

- others - - - -

Return on plan assets, excluding amount recognised in net interest expense - - 59 -

Remeasurement (or actuarial) (gain) / loss arising because of change in effect

of asset ceiling

- - - -

Component of defined benefit costs recognised in other comprehensive income

- - 210 (14)

Year ended 31.03.17 Actuarial (gains) / losses


- changes in financial assumptions - - 108 4


- others - - - -

Return on plan assets, excluding amount recognised in net interest expense - - (93) -


of asset ceiling

- - - -


- - 166 (8)

The current service cost and the interest expense for the year are included in the 'Employee benefits expense' in the profit or loss.

The remeasurement of the net defined benefit liability is included in other comprehensive income




172

The amount included in the balance sheet arising from the entity's obligation in respect of its defined benefit plans is as follows:

Provident Fund


Absence

Employees Gratuity

Fund


As at 31.03.18 Present value of obligation 16,672 2,916 2,906 69

Fair value of plan assets 17,292 - 2,906 -

Surplus / (deficit) 620 (2,916) - (69) Effects of asset ceiling, if any * 620 - - -

Net asset / (liability) - (2,916) - (69) As at 31.03.17 Present value of obligation 13,938 2,540 2,371 66


Surplus / (deficit) 309 (2,540) - (66) Effects of asset ceiling, if any * 309 - - -

Net asset / (liability) - (2,540) - (66)

* The Company has an obligation to make good the shortfall, if any.

Classification into long term and short term:

Provident Fund


Absence

Employees Gratuity

Fund


As at 31.03.18 Classified as long term - - - 66

Classified as short term - 2,916 - 3

Total - 2,916 - 69 As at 31.03.17 Classified as long term - - - 63


Total - 2,540 - 66



173

Movement in the present value of the defined benefit obligation are as follows:

Provident Fund


Absence

Employees Gratuity

Fund


Year ended 31.03.18Present value of obligation as at the beginning 13,938 2,540 2,371 66 Current service cost 551 326 127 12

Interest expense or cost 1,300 187 180 5

Employees' contribution 1,542 - - -

Transfer in 10 - - -

Remeasurement (or actuarial) (gain) / loss arising from:

- change in demographic assumptions - - - -

- change in financial assumptions - (36) (74) (1)

- experience variance - 324 225 (13)

- others - - - -


Benefits paid (669) (425) (124) -

Present value of obligation as at the end 16,672 2,916 2,906 69

Provident Fund


Absence

Employees Gratuity

Fund








- change in financial assumptions - 60 108 4


- others - - - -


Benefits paid (538) (399) (130) -


Movement in the fair value of the plan assets are as follows:

Provident Fund

Employees Gratuity Fund

Year ended 31.03.18Fair value of plan assets at the beginning 14,247 2,371 Interest income 1,232 180

Employer's contribution 551 538

Employee's contribution 1,542 -

Transfer in 10 -

Benefits paid (669) (124)

Actuarial Gain/(Loss) on Plan Assets 379 (59)

Fair value of plan assets as at the end 17,292 2,906




174

Provident Fund




Employee's contribution 1,325 -

Transfer in 234 -


Actuarial Gain/(Loss) on Plan Assets 46 93


Major categories of plan assets (as percentage of total plan assets):

Provident Fund


As at 31.03.18Government of India securities 13% 0%

State Government securities 33% 0%

High quality corporate bonds 46% 0%

Equity shares of listed companies 2% 0%

Fund managed by insurer (including ULIPs) 0% 84%

Special deposit scheme 2% 0%

Cash & cash equivalents 4% 16%

Total 100% 100%








Total 100% 100%

The fair value of the above ULIP schemes are determined based on the Net Asset Value (NAV). Moreover, for other investments the fair

value is taken as per the account statements of the insurance companies.

The average duration of the defined benefit obligation of gratuity fund at 31.03.18 is 14 years (as at 31.03.17: 12 years).



175

The Company expects to make a contribution of ` 173 million (as at 31.03.17: ` 160 million) to the defined benefit plans during the next

financial year.

Sensitivity analysisSignificant actuarial assumption for the determination of defined obligation are discount rate, expected salary growth rate, attrition

rate and mortality rate. The sensitivity analysis below have been determined based on reasonably possible changes in respective

assumption occurring at the end of reporting period, while holding all other assumptions constant.

If the discount rate increases (decreases) by 1%, the defined benefit obligation would decrease by ` 508 million (increase by ` 604

million) (as at 31.03.17: decrease by ` 410 million (increase by ` 485 million)).

If the expected salary growth rate increases (decreases) by 1%, the defined benefit obligation would increase by ̀ 567 million (decrease

by ` 490 million) (as at 31.03.17: increase by ` 436 million (decrease by ` 363 million)).

33. Financial Instruments And Risk Management

33.1 Financial instruments by category

As at 31.03.2018 As at 31.03.2017

FVTPL FVOCI Amortised cost

Total Carrying

Value

FVTPL FVOCI Amortised

cost

Total

Carrying

Value

Financial assetsInvestments *

- in equity instruments - 10,771 - 10,771 - 7,301 - 7,301

- in debt mutual funds 340,820 - - 340,820 276,198 - - 276,198

Trade Receivable - - 14,618 14,618 - - 11,992 11,992

Cash and bank balances - - 711 711 - - 138 138

Loans - - 32 32 - - 28 28

Security deposits - - 196 196 - - 110 110

Foreign currency / commodity forward contracts 109 - - 109 163 - - 163

Interest accrued - - 22 22 - - 21 21

Recoverable from related parties - - 2,464 2,464 - - 624 624

Others - - 379 379 - - 270 270

Total financial assets 340,929 10,771 18,422 370,122 276,361 7,301 13,183 296,845 Financial liabilitiesBorrowings - - 1,108 1,108 - - 4,836 4,836

Trade payables - - 104,970 104,970 - - 83,673 83,673

Deposits from dealers, contractors and others - - 2,862 2,862 - - 3,734 3,734

Payable to capital creditors - - 9,881 9,881 - - 8,308 8,308


Unpaid dividend - - 12 12 - - 8 8

Book overdraft - - 548 548 - - 914 914

Foreign currency / commodity forward contracts - 2 - 2 - - - -

Others - - 13 13 - - 36 36

Total financial liabilities - 2 119,414 119,416 - - 101,536 101,536

* Investment value excludes investment in subsidiaries of ` 77 million (as at 31.03.2017 : ` 77 million); investment in joint ventures of

` 152 million (as at 31.03.2017 : ` 152 million) and investment in associates of ` 1,082 million (as at 31.03.2017 : ` 1,082 million) which

are shown at cost in balance sheet as per Ind AS 27 : Separate Financial Statements.




176

Fair value hierarchy The following table provides an analysis of financial instruments that are measured at fair value and have been grouped into Level 1,

Level 2 and Level 3 below:

As at 31.03.2018 Notes No Level 1 Level 2 Level 3 Total

Financial assets Financial instruments at FVTPL

Investments in debt mutual funds 6 308,518 32,302 - 340,820 Foreign currency / commodity forward contracts 9 - 109 - 109 Financial instruments at FVTOCI

Quoted equity instruments 6 10,334 - - 10,334 Unquoted equity instruments 6 - - 437 437 Total financial assets 318,852 32,411 437 351,700 Financial liabilities Financial instruments at FVTPL

Foreign currency / commodity forward contracts 16 - 2 - 2 - 2 - 2




Quoted equity instruments 6 6,984 - - 6,984 Unquoted equity instruments 6 - - 317 317 Total financial assets 245,747 37,598 317 283,662

Level 1: Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted

prices in the active market. This category consists of quoted equity shares and debt based open ended mutual funds.

Level 2: Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted

prices included within Level 1 that are observable for such items, either directly or indirectly. This level of hierarchy consists of debt

based close ended mutual fund investments and over the counter (OTC) derivative contracts.

Level 3: Valuation techniques with unobservable inputs. This level of hierarchy includes items measured using inputs that are not

based on observable market data (unobservable inputs). Fair value determined in whole or in part, using a valuation model based on

assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on

available market data. The main item in this category are unquoted equity instruments.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction

between market participants. The following methods and assumptions were used to estimate the fair values:

Investments in debt mutual funds: Fair value is determined by reference to quotes from the financial institutions, i.e. net asset value

(NAV) for investments in mutual funds declared by mutual fund house.

Derivative contracts: The Company has entered into variety of foreign currency and commodity forward contracts and swaps to manage

its exposure to fluctuations in foreign exchange rates and commodity price risk. These financial exposures are managed in accordance

with the Company’s risk management policies and procedures. Fair value of derivative financial instruments are determined using

valuation techniques based on information derived from observable market data.

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

Unquoted equity investments: Fair value is derived on the basis of income approach, in this approach the discounted cash flow method is

used to capture the present value of the expected future economic benefits to be derived from the ownership of these investments.



177

Reconciliation of Level 3 fair value measurement

Unlisted equity instruments

As at 01.04.2016 207

Acquisition -

Gains/(losses) recognised -

- in other comprehensive income 110

As at 31.03.2017 317 Acquisition -

Gains/(losses) recognised -


As at 31.03.2018 437

33.2 Financial risk management The Company's activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial

performance of the Company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option

contracts are entered to hedge certain foreign currency risk exposures and interest rate swaps to hedge variable interest rate

exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge

accounting in the financial statements.

Risk Exposure arising from Measurement ManagementCredit risk Cash and cash equivalents, trade receivables,

derivative financial instruments, financial assets

measured at amortised cost

Aging analysis

Credit rating

Diversification of bank deposits,

credit limits and letter of credit

Liquidity risk Business commitment and other liabilities Rolling cash flow forecasts Availability of committed credit

lines and borrowing facilities

Market risk - foreign exchange Future commercial transactions

Recognised financial assets and liabilities not

denominated in Indian rupee (`)

Cash flow forecasting

Sensitivity analysis

Forward foreign exchange

contracts

Foreign currency options

Market risk - interest rate Borrowings at variable rates Sensitivity analysis Interest rate swaps

Market risk - security prices Investments in equity instruments and debt mutual

funds

Sensitivity analysis Portfolio diversification

The financial risk management of the Company is carried out under the policies approved by the Board of Directors. Within these

policies, the Board provides written principles for overall risk management including policies covering specific areas, such as foreign

exchange risk management, commodity risk management and investment of funds.

(A) Credit risk Credit risk arises from the possibility that the counter party may not be able to settle their obligations. To manage trade receivable,

the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends,

analysis of historical bad debts and aging of such receivables.

Financial instruments that are subject to such risk, principally consist of investments, trade receivables, loans and advances and

derivative instruments. None of the financial instruments of the Company results in material concentration of credit risks.




178

Financial assets for which loss allowance is measured:

Notes No As at 31.03.2018

As at

31.03.2017

Loans - non current 7 125 125

Trade receivables 8 24 6

Other financial assets - current 9 - 4

Other than financial assets mentioned above, none of the finanacial assets were impaired and there were no indications that defaults

in payment obligations would occur.

(B) Liquidity risk Liquidity risk refers to the risk that the Company can not meet its financial obligations. The objective of liquidity risk management is to

maintain sufficient liquidity and to ensure funds are available for use as per the requirements.

The Company operates with a low Debt Equity ratio. The Company raises short term rupee borrowings for cash flow mismatches and

hence carries no significant liquidity risk. The Company has access to the borrowing facilities of ` 29,850 million as at 31.03.2018

(` 28,450 million as at 31.03.2017) to honour any liquidity requirements arising for business needs. The Company has large investments

in debt mutual funds which can be redeemed on a very short notice and hence carries negligible liquidity risk.

(i) Financing arrangements

The Company had access to the following borrowing facilities at the end of the reporting period:

As at 31.03.2018

As at

31.03.2017

Floating rate - Expiring within one year (bank overdraft and other facilities) 29,850 28,450

- Expiring beyond one year (bank loans) - -

29,850 28,450

(ii) Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their contractual maturities:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying

balances as the impact of discounting is not significant.

Contractual maturities of financial liabilities

Less than 1 year More than 1 year Total

As at 31.03.2018Borrowings 1,108 - 1,108

Trade payables 104,970 - 104,970

Other financial liabilities 13,338 - 13,338

119,416 - 119,416



179


As at 31.03.2017Borrowings 4,836 - 4,836



101,536 - 101,536

(C) Market risk (i) Foreign currency risk

The Company has exposure to foreign currency risk on account of its payables and receivables in foreign currency which are mitigated

through the guidelines under the foreign currency risk management policy approved by the Board of Directors. The Company enters

into derivative financial instruments to mitigate the foreign currency risk and interest rate risk including,

a) forward foreign exchange and options contracts for foreign currency risk mitigation

b) foreign currency interest rate swaps to mitigate foreign currency & interest rate risk on foreign currency loan.

Foreign currency risk exposure The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of the

reporting periods expressed in ,̀ are as follows:

(In Millions)

JPY USD EURO GBP SGD

As at March 31, 2018Financial assetsTrade receivables 2,700 2,600 71 - -

Foreign exchange derivative contracts - (776) - - -

Net exposure to foreign currency risk (assets) 2,700 1,824 71 - - Financial liabilitiesTrade payables and other financial liabilites 17,991 1,899 1,327 4 155

Foreign exchange derivative contracts (5,173) - (758) - -

Net exposure to foreign currency risk (liabilities) 12,818 1,899 569 4 155

(In Millions)



Foreign exchange derivative contracts - - - - -

Net exposure to foreign currency risk (assets) 2,248 2,224 38 - - Financial liabilitiesTrade payables and other financial liabilites 18,564 1,392 1,647 8 -


Net exposure to foreign currency risk (liabilities) 3,472 1,392 864 8 -




180

Foreign currency sensitivity analysis The Company is mainly exposed to JPY, USD and EURO.

The following table details the Company's sensitivity to a 10% increase and decrease in the INR against the relevant foreign currencies.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their

translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans. A positive

number below indicates an increase in profit or equity and vice-versa.

Year ended 31.03.2018 Year ended 31.03.2017

` strengthens by 10%

` weakening by 10%

` strengthens by

10%

` weakening by

10%

Impact on profit or loss for the year

JPY impact 1,529 (1,529) 1,632 (1,632)

USD Impact (70) 70 (83) 83

EURO Impact 126 (126) 161 (161)

(ii) Security price risk

Exposure in equity

The Company is exposed to equity price risks arising from equity

investments held by the Company and classified in the balance

sheet as fair value through OCI.

Equity price sensitivity analysis

The sensitivity analysis below have been determined based on

the exposure to equity price risks at the end of the reporting

period.

If the equity prices had been 5% higher / lower:

Other comprehensive income for the year ended 31st March

2018 would increase / decrease by ` 539 million (for the year

ended 31st March 2017: increase / decrease by ` 365 million) as

a result of the change in fair value of equity investment measured

at FVTOCI.

Exposure in mutual funds

The Company manages the surplus funds majorly through

investments in debt based mutual fund schemes. The price of

investment in these mutual fund schemes is reflected though Net

Asset Value (NAV) decleared by the Asset Management Company

on daily basis as reflected by the movement in the NAV of

invested schemes. The Company is exposed to price risk on such

Investments.

Mutual fund price sensitivity analysis

The sensitivity analysis below have been determined based

on Mutual Fund Investment at the end of the reporting

period.

If NAV has been 1% higher / lower:

Profit for year ended 31.03.2018 would increase / decrease by

` 3,408 million (for the year ended 31.03.2017 by ` 2,762 million)

as a result of the changes in fair value of mutual fund investments.

33.3 Capital management The Company's objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that

they can continue to provide returns for shareholders and benefits

for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company

may adjust the amount of dividends paid to shareholders, return

capital to shareholders or issue new shares.

The Company has large investments in debt mutual fund schemes

wherein underlying portfolio is spread across securities issued by

different issuers having different credit ratings. The credit risk of

investments in debt mutual fund schemes is managed through

investment policies and guidelines requiring adherence to

stringent credit control norms based on external credit ratings.

The credit quality of the entire portfolio investments is monitored

on a quarterly basis. The Company's overall strategy remains

unchanged from previous year.



181

The following table provides detail of the debt and equity at the end of the reporting period:

As at 31.03.2018

As at

31.03.2017

Borrowings 1,108 4,836

Cash and cash equivalents (699) (130)

Net debt 409 4,706

Total equity 417,573 364,311

Net debt to equity ratio 0.001 0.013

The Company is not subject to any externally imposed capital requirements.

33.4 Foreign exchange derivative contracts The Company follows a consistent policy of mitigating foreign exchange risk by entering into appropriate hedging instruments as

considered necessary from time to time. Depending on the future outlook on currencies, the Company may keep the exposures

unhedged or hedged only as a part of the total exposure. - -

The Company does not enter into a foreign exchange derivative transactions for speculative purposes.

The following table details the foreign currency derivative contracts outstanding at the end of the reporting period:

Outstanding Contracts Avg. Exchange Rate Foreign Currency Nominal Amount Fair value asset / (liabilities)

Cash flow hedgesSell USD (Less than 3 months)31.03.2018 65.18 12 785 (2)

31.03.2017 - - - -




182

34. Related Party Transactions34.1 Description of related parties

* ceased to be subsidiary w.e.f. April 01, 2016. Refer note-40.

Holding Company Suzuki Motor Corporation, Japan (SMC)

Subsidiaries J.J. Impex (Delhi) Private Limited

True Value Solutions Limited

Maruti Insurance Distribution Services Limited *

Maruti Insurance Agency Network Limited *

Maruti Insurance Agency Solutions Limited *

Maruti Insurance Business Agency Limited *

Maruti Insurance Broker Limited *

Maruti Insurance Agency Logistics Limited *

Maruti Insurance Agency Services Limited *

Joint Ventures Magneti Marelli Powertrain India Private Limited

Plastic Omnium Auto Inergy Manufacturing India Private Limited

Associates Bharat Seats Limited

Caparo Maruti Limited

Jay Bharat Maruti Limited

Krishna Maruti Limited

Machino Plastics Limited

SKH Metals Limited

Nippon Thermostat (India) Limited

Bellsonica Auto Component India Private Limited

Mark Exhaust Systems Limited

FMI Automotive Components Private Limited

Maruti Insurance Broking Private Limited

Manesar Steel Processing India Private Limited

Hanon Climate Systems India Private Limited

Fellow Subsidiaries (only with whom the Company had transactions during the current year) Magyar Suzuki Corporation Ltd.

Suzuki Motor Gujarat Private Limited

Suzuki Assemblers Malaysia Sdn.Bhd

Cambodia Suzuki Motor Co. Ltd.

Suzuki Motor De Mexico

Vietnam Suzuki Corporation

Suzuki International Europe G.M.B.H.

Suzuki Australia Pty. Ltd.

Suzuki Motor Poland Sp. Z.O.O.

Suzuki Gb Plc

Suzuki Auto South Africa (Pty) Ltd

Suzuki Philippines Inc.

Taiwan Suzuki Automobile Corporation

Suzuki Motor (Thailand) Co., Ltd.

Suzuki Thilawa Motor Co. Ltd

Suzuki Motorcycle India Ltd.

Thai Suzuki Motor Co., Ltd.

Suzuki (Myanmar) Motor Co., Ltd.

Suzuki Malaysia Automobile Sdn. Bhd.

Suzuki New Zealand Ltd.

Pt Suzuki Indomobil Motor

Suzuki Austria Automobile Handels G.M.B.H.

Suzuki France S.A.S.

Suzuki Italia S.P.A.

Suzuki Motor Iberica, S.A.U.

Key Management Personnel (KMP)Mr R. C. Bharagava

Chairman

Mr. Kenichi Ayukawa

Managing Director & CEO

Mr. Kazunari Yamaguchi

Director (w.e.f. January 26, 2018)

Mr. O. Suzuki

Director

Mr. T. Suzuki

Director

Mr. Toshiaki Hasuike

Director


Director (till January 25, 2018)

Mr. K. Ayabe

Director

Mr. K. Saito

Director

Mr. Davinder Singh Brar

Independent Director

Mr. Rajinder Pal Singh Independent Director

Ms. Pallavi Shroff


Ms. Renu Sud Karnad


Mr. Ajay Seth

Chief Financial Officer

Mr. S. Ravi Aiyar

Company Secretary (till February 28, 2018)

Mr. Sanjeev Grover

Company Secretary (w.e.f. March 21, 2018)

Late Mr. Amal Ganguli (till May 7, 2017)




183

34.2 Transaction with related parties

For the year ended 31.03.2018

For the year ended

31.03.2017

Sale of goods to: - Holding Company 22,836 25,660

- Subsidiaries 247 238

- Fellow Subsidiaries

- Suzuki Motorcycle India Limited 8,106 6,691

- Others 8,549 7,863

39,738 40,452 Sale of property, plant & equipment to: - Fellow Subsidiaries

- Suzuki Motor Gujarat Private Limited 25 120

- Suzuki Motorcycle India Limited 205 235

230 355 Purchase of goods from: - Holding Company 14,150 15,116

- Associates

-Jay Bharat Maruti Limited 10,622 10,992

-Krishna Maruti Limited 13,739 13,230

-Others 34,996 35,416

- Joint Ventures 8,553 7,448


- Suzuki Motor Gujarat Private Limited 50,874 6,816

-Others 2,613 2,674

135,547 91,692 Purchase of property, plant & equipment and intangible assets from: - Holding Company 1,704 3,036

- Associates

- Jay Bharat Maruti Limited 524 1,192

- Krishna Maruti Limited 329 380

- Others 447 992

- Joint Ventures 6 156

- Fellow Subsidiaries - 65

3,010 5,821 Finance income / commission / dividend from: - Associates

- Jay Bharat Maruti Limited 16 13

- Hanon Climate Systems India Private Limited 128 78

- Others 6 5


165 106 Other operating revenue / other income from: - Holding Company 347 660

- Associates 73 67


- Fellow Subsidiaries 140 81

565 814




184


For the year ended

31.03.2017

Recovery of expenses from: - Holding Company 440 90

- Associates

- Bellsonica Auto Component India Private Limited 220 189


- Others 298 233



-Suzuki Motor Gujarat Private Limited 2,725 290

- Others 50 42

4,075 1,077 Services received from: - Holding Company 1,705 385

- Associates 5 1

1,710 386 Dividend paid to: - Holding Company 12,734 5,943

12,734 5,943 Royalty expenses: - Holding Company 40,352 38,480

40,352 38,480 Other expenses: - Holding Company 142 440

- Subsidiaries 148 42

- Associates 33 41


- Suzuki Motor Gujarat Private Limited 2,922 1

-Suzuki Auto South Africa(Pty) Limited 190 82

- Others 32 69

3,467 675



185

As at 31.03.2018

As at

31.03.2017

Trade Receivables: - Holding Company 2,776 2,309

- Subsidiaries 5 27

- Associates 34 55


- Suzuki Motorcycle India Limited 1,091 724


- Others 704 549

5,134 4,090 Other current assets:- Holding Company 26 127

- Associates

-Jay Bharat Maruti Limited 96 189

- Others 238 318



-Others 2 1


5,815 980 Other financial assets:- Holding Company 411 -

- Associates

- Caparo Maruti Limited 30 37



- Mark Exhaust Systems Limited 12 33

- SKH Metals Limited 36 76

- Others 40 47

- Joint Ventures - 3



- Others 46 -

2,464 624 Other non current assets: - Holding Company 149 429

- Associates



-Bharat Seats Limited 147 1

- Others 19 34


1,020 622 Goods in transit: - Holding Company 1,526 3,634


- Others 129 418

1,655 4,052




186

As at 31.03.2018

As at

31.03.2017

Trade payable: - Holding Company 24,408 19,165

- Subsidiaries 11 -

- Associates 6,616 10,723


- Fellow Subsidiaries 2,740 1,852

34,189 32,312 Other financial liabilities - Holding Company 1,634 1,063

- Associates


- FMI Automotive Components Private Limited 45 101

- Others 380 274



2,190 1,812

34.3 Key management personnel compensation


For the year ended

31.03.2017

Short-term benefits 163 161

Post-employment benefits 1 5

Other long-term benefits - 1

Total Compensation* 164 167 Mr. Kenichi Ayukawa 45 42

Mr. Ajay Seth 26 22

Mr. S. Ravi Aiyar (till 28-Feb-18) 34 20

Mr. Toshiaki Hasuike 1 24

Mr. Shigetoshi Torii 20 31

Others 38 28

Total Compensation 164 167

*Refer to note-32 for employee benefit plans.



187

35. Operating Lease Arrangements

The Company as a Lessee Leasing arrangements

The Company has entered into operating lease arrangements for various land. These arrangements are non-cancellable in nature and

range between fifteen to ninty nine years. Lease rental expense is set out in note 28 as 'Rent' in 'Other expenses'. The future minimum

lease commitments under non-cancellable operating leases are as under:

Non-cancellable operating lease commitments

As at 31.03.2018

As at

31.03.2017

Within one year 59 59

Later than one year but less than five years 257 250

Later than five years 366 432

682 741

The Company as a Lessor Leasing arrangements

The Company has entered into operating lease arrangements for various land and premises. These arrangements are both cancellable

and non-cancellable in nature and range between three to fifteen years. Lease rental income earned by the Company is set out in Note

22 as ‘Rental income’. The future minimum lease receivables under non-cancellable operating leases are as under:

Non-cancellable operating lease receivables

As at 31.03.2018

As at

31.03.2017



Later than five years 1,117 1,234

1,656 1,744

36. Capital & Other Commitments

As at 31.03.2018

As at

31.03.2017

Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and

not provided for

32,718 27,682

Outstanding commitments under Letters of Credit established by the Company 2,162 1,348

37. Export Promotion Capital Goods (EPCG)

Export Promotion Capital Goods (EPCG) allows import of capital goods including spares for pre-production, production and post

production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be

fulfilled in 6 years reckoned from authorization issue date.

The Company has been availing the benefit and has been importing capital goods under the scheme at zero custom duty. The Company

has accounted for the benefits received in accordance with the Ind AS 20- Accounting for Government Grants and Disclosure of

Government Assistance.




188

The benefits (saving of custom duty) obtained from government has been treated as a Government Grant, which has been accounted

for as deferred benefit under other current liabilities in note no 19 and recognised as a cost of property, plant and equipment. As per

the EPCG scheme, the Company has an export obligation equivalent to 6 times of duty saved. The deferred benefit accounted for, shall

be credited to statement of profit and loss on a pro-rata basis as and when the export obligation is fulfilled.

38. Contingent Liabilities

A) Claims against the Company disputed and not acknowledged as debts:

As at 31.03.2018

As at

31.03.2017

(i) Excise Duty (a) Cases decided in the Company’s favour by Appellate authorities and for which the department has filed

further appeals and show cause notices / orders on the same issues for other periods

1,598 1,585

(b) Cases pending before Appellate authorities in respect of which the Company has filed appeals and

show cause notices for other periods

12,691 11,751

Total 14,289 13,336 Amount deposited under protest 1,601 1,598

(ii) Service Tax (a) Cases decided in the Company’s favour by Appellate authorities and for which the department has filed


1,060 715



2,851 2,602

(c) Show cause notices on issues yet to be adjudicated 158 364

Total 4,069 3,681 Amount deposited under protest 61 52

(iii) Income Tax* (a) Cases decided in the Company’s favour by Appellate authorities and for which the department has filed

further appeals

5,447 11,588

(b) Cases pending before Appellate authorities / Dispute Resolution Panel in respect of which the

Company has filed appeals

47,448 44,692


(iv) Custom Duty (a) Cases pending before Appellate authorities in respect of which the Company has filed appeals 108 108

(b) Others 60 51

Total 168 159 Amount deposited under protest 25 22

(v) Sales Tax Cases pending before Appellate authorities in respect of which the Company has filed appeals 67 67

Amount deposited under protest 18 18

(vi) Claims Claims against the Company lodged by various parties 1,017 730

Others 31 -

*Refer Note-40.3

(vii) In earlier years, pursuant to Court orders, the Haryana

State Industrial & Infrastructure Development Corporation

Limited (""HSIIDC"") had raised demands on the company

amounting to ` 10,317 million towards payment of enhanced

compensation to landowners for the Company’s freehold

land at Manesar, Haryana. During the year HSIIDC has

revised the demands to ` 9,717 million after adjusting ` 3,742

million paid by the Company under protest in earlier years.

Against the above demands and pursuant to a scheme notified

by HSIIDC (for all allottees) to clear outstanding dues of enhanced

compensation in one-go (with partial relief in interest), the Company

during the current period cleared the above demands by paying

` 9,234 million. This includes principal amounting to ̀ 5,949 million

and interest of ` 3,285 million (` 2,507 million, has been provided

for during the current year) which has been debited towards cost of

land and charged off to the statement of profit and loss respectively.



189

(viii) In respect of disputed Local Area Development Tax (LADT)

(upto April 15, 2008) / Entry Tax, the amounts under dispute are

` 21 million (as at 31.03.2017: ` 21 million) for LADT and ` 20

million (as at 31.03.2017: ` 19 million) for Entry Tax. The State

Government of Haryana has repealed the LADT effective from

April 16, 2008 and introduced the Haryana Tax on Entry of Goods

into Local Area Act, 2008 with effect from the same date.

(ix) The Competition Commission of India (“CCI”) had passed

an order dated August 25, 2014 stating that the Company has

violated certain sections of the Competition Act, 2002 and has

imposed a penalty of ̀ 4,712 million. An interim stay is in operation

on the above order of the CCI pursuant to the writ petition filed by

the Company before the Delhi High Court.

B) The amounts shown in the item (A) represent the best possible

estimates arrived at on the basis of available information. The

uncertainties and possible reimbursements are dependent on

the outcome of the different legal processes which have been

invoked by the Company or the claimants as the case may be and

therefore cannot be predicted accurately or relate to a present

obligations that arise from past events where it is either not

probable that an outflow of resources will be required to settle

or a reliable estimate cannot be made. The Company engages

reputed professional advisors to protect its interests and has been

advised that it has strong legal positions against such disputes.

39. Excise Duty Consequent to the introduction of Goods and Services Tax (GST)

with effect from July 01, 2017; Central Excise, Value Added Tax

(VAT) etc. have been subsumed into GST. In accordance with

Ind AS - 18 on Revenue Recognition and Schedule III of the

Companies Act, 2013, unlike Excise Duty, levies like GST, VAT

etc. are not part of revenue. Accordingly, the figure for the period

ending Mar 18 is not comparable with period ending Mar 17. The

following additional information is being provided to facilitate

such understanding:


Year ended

31.03.2017

A. Sale of products 803,365 761,408

B. Excise duty 22,317 92,314

C. Sale of products excluding excise duty

(A) - (B)

781,048 669,094

40. Scheme of Amalgamation

40.1 The Scheme of Amalgamation ('the Scheme') between the

Company (Amalgamated Company) and its seven wholly owned

subsidiaries (Amalgamating Companies), by the name Maruti





Limited and Maruti Insurance Broker Limited as approved by

the National Company Law Tribunal became effective w.e.f. the

appointed date, i.e., April 1, 2016 on completion of all required

formalities on July 11, 2017.The Scheme envisages transfer

of all properties, rights, powers, liabilities and duties of the

Amalgamating Companies to the Amalgamated Company.

40.2 Pursuant to the Scheme, the amalgamation has been

accounted in accordance with the Ind AS 103 “Business

Combinations and the assets, liabilities and reserves of the

Amalgamating Companies have been accounted for at their

book value, in the books of the Amalgamated Company. The

share capital of the Amalgamating Companies have been

cancelled with the Amalgamated Company’s investment in the

Amalgamating Companies. The net assets and reserves taken

over as at April 1, 2016 amounted to ` 2,489 million and ` 2,475

million respectively.

Detailed breakup of assets and liabilities is as under:

Net Amount

AssetsProperty, plant and equipment (net) 35

Investments 2,373

Cash and bank balances 25

Other current assets 4

Current tax assets (net) 49

Deferred tax assets (net) 3

Total assets 2,489 Other current liabilities 0.3

Total liabilities 0.3

Net assets acquired on amalgamation 2,489 Reserves & Surplus 2,475

Less: Adjustment for cancellation of Company's investment

in Transferor Companies

14

40.3 Previous year figures have been restated to give effect to

amalgamation as mentioned above.

41. The Company entered into a ‘Contract Manufacturing

Agreement’ (CMA) with Suzuki Motor Gujarat Private Limited

(SMG), a fellow subsidiary of Suzuki Motor Corporation (SMC) on

December 17, 2015 for a period of 15 years which automatically

extends for a further period of 15 years, unless terminated by

mutual agreement. SMG during the term of this agreement, shall

manufacture and supply vehicles on an exclusive basis to MSIL in

accordance with the terms of the CMA . Accordingly, expenses

recorded during the year includes ` 2,921 million (previous year

` 396 million) towards the lease of specific Property, Plant &

Equipment.




190

42. Auditors' Remuneration * #


Year ended

31.03.2017

Statutory audit 16 18

Taxation matters 8 5

Other audit services / certification 4 3

Reimbursement of expenses 1 1

* excluding GST, Service Tax and Swachh Bharat & Krishi Kalyan Cess.

# includes ` 4.31 million paid to predecessor auditors & ` 0.28 million paid to auditors of merged entities in FY 16-17

43. Details of Research and Development Expenses


Year ended

31.03.2017

Revenue expenditure Employees remuneration and benefits 3,100 2,280

Other expenses of manufacturing and administration 1,973 1,249

Capital expenditure 3,570 3,491

Less: Contract research income (327) (616)

8,316 6,404

44. CIF Value of Imports


Year ended

31.03.2017

Raw materials and components 38,879 37,254

Capital goods 6,483 14,818


Dies and moulds 94 85

Others 567 116

45. Value of Imported and Indigenous Material Consumed


Year ended

31.03.2017

i) Raw material and components Imported 29,965 33,221 Indigenous 419,448 393,075

449,413 426,296 Percentage of total consumption Imported 7% 8% Indigenous 93% 92%ii) Machinery spares Imported 581 503 Indigenous 2,109 2,184

2,690 2,687 Percentage of total consumption Imported 22% 19% Indigenous 78% 81%iii) Consumption of stores Imported 115 169 Indigenous 2,247 2,072 2,362 2,241 Percentage of total consumption Imported 5% 8% Indigenous 95% 92%



191

46. Licensed Capacity, Installed Capacity and Actual Production

Product Units Licensed Capacity

Installed Capacity **

Actual Production

Passenger Cas and Light Duty Utility Vehicles Nos - * 1,566,800 1,624,487 (-)* (1,555,000) (1,573,414)

Notes

* Licensed capacity is not applicable from 1993-94.

** Installed capacity is as certified by the management and relied upon by the auditors, being a technical matter

Previous year figures are in bracket.

47. Sales, Opening Stock and Closing Stock

Product Sales Opening Stock Closing StockQty (Nos) Value Qty (Nos) Value Qty (Nos) Value

Passenger Vehicles 1,779,574 731,314 33,156 12,330 29,789 9,700

(1,568,603) (696,253) (19,162) (7,695) (33,156) (12,330)

Spare Parts and Components * 71,803 * 481 * 363

* (64,741) * (441) * (481)

Dies, Moulds and Others * 248 * - * -

* (414) * - * -

Work in Progress * NA * 1,546 * 1,772

* (NA) * (1,643) * (1,546)

Notes:

1 Traded goods comprise vehicle, spares, components, dies and moulds. During the year 153,233 vehicle (previous year 10,449 vehicle) was purchased

2 Closing stock of vehicles is after adjustment of 82 vehicles (previous year 65 vehicles) totally damaged.

3 Sales quantity excludes own use vehicles 1,284 Nos. (previous year 1,130 Nos.)

4 Sales quantity excludes sample vehicles 147 Nos. (previous year 71 Nos.)

5 Previous year figures are in bracket.

* In view of the innumerable sizes / numbers (individually less than 10%) of the components, spare parts and dies and moulds it is not possible to give quantitative

details.

48. Statement of Raw Material and Components Consumed

Group of material

Unit 2017-18 2016-17

Qty Amount Qty Amount

Steel coils MT 290,071 14,866 282,397 13,496 Ferrous castings MT 42,858 5,519 42,507 4,876 Non-ferrous castings MT 47,730 8,339 43,132 6,678 Other components * 416,671 * 397,440 Paints K.LTR 13,082 11,848

MT 11,938 4,018 11,347 3,806 449,413 426,296

* In view of the innumerable sizes / numbers (individually less than 10%) of the components, spare parts and dies and moulds it is not possible to give quantitative

details.

49 The finanical statements were approved by the the Board of Directors and authorised for issue on April 27, 2018.

KENICHI AYUKAWA KAZUNARI YAMAGUCHI AJAY SETH SANJEEV GROVERManaging Director & CEO Director Chief Financial Officer Chief General Manager & Company Secretary

DIN : 02262755 DIN : 07961388

ICSI Membership No : F3788

Place: New Delhi


Financial Statements (Consolidated) | Independent Auditor’s Report

192

Independent Auditor’s Report

To The Members of MARUTI SUZUKI INDIA LIMITED

Report on the Consolidated Ind AS Financial Statements

We have audited the accompanying consolidated Ind AS

financial statements of Maruti Suzuki India Limited (hereinafter

referred to as "the Parent") and its subsidiaries (the Parent and its

subsidiaries together referred to as "the Group") which includes

Group’s share of profit/loss in its associates and its joint ventures,

comprising the Consolidated Balance Sheet as at 31 March, 2018,

the Consolidated Statement of Profit and Loss (including other

comprehensive income), the Consolidated Cash Flow Statement,

the Consolidated Statement of Changes in Equity, for the year

then ended, and a summary of the significant accounting policies

and other explanatory information (hereinafter referred to as "the

consolidated Ind AS financial statements").

Management's Responsibility for the Consolidated Ind AS Financial Statements

The Parent's Board of Directors is responsible for the preparation

of these consolidated Ind AS financial statements in terms of the

requirements of the Companies Act, 2013 (hereinafter referred to as

"the Act") that give a true and fair view of the consolidated financial

position, consolidated financial performance including other

comprehensive income, consolidated cash flows and consolidated

statement of changes in equity of the Group including its Associates

and Joint ventures in accordance with the Indian Accounting

Standards (Ind AS) prescribed under section 133 of the Act read

with the Companies (Indian Accounting Standards) Rules, 2015, as

amended, and other accounting principles generally accepted in

India. The respective Board of Directors of the companies included

in the Group and of its associates and joint ventures are responsible

for maintenance of adequate accounting records in accordance

with the provisions of the Act for safeguarding the assets of the

Group, its associates and its joint ventures and for preventing

and detecting frauds and other irregularities; the selection and

application of appropriate accounting policies; making judgments

and estimates that are reasonable and prudent; and the design,

implementation and maintenance of adequate internal financial

controls, that were operating effectively for ensuring the accuracy

and completeness of the accounting records, relevant to the

preparation and presentation of the consolidated Ind AS financial

statements that give a true and fair view and are free from material

misstatement, whether due to fraud or error, which have been

used for the purpose of preparation of the consolidated Ind AS

financial statements by the Directors of the Parent, as aforesaid.

Auditor's Responsibility

Our responsibility is to express an opinion on these consolidated

Ind AS financial statements based on our audit. In conducting our

audit, we have taken into account the provisions of the Act, the

accounting and auditing standards and matters which are required

to be included in the audit report under the provisions of the Act

and the Rules made thereunder.

We conducted our audit in accordance with the Standards on

Auditing specified under Section 143(10) of the Act. Those

Standards require that we comply with ethical requirements and

plan and perform the audit to obtain reasonable assurance about

whether the consolidated Ind AS financial statements are free

from material misstatement.

An audit involves performing procedures to obtain audit evidence

about the amounts and the disclosures in the consolidated Ind

AS financial statements. The procedures selected depend on

the auditor's judgment, including the assessment of the risks

of material misstatement of the consolidated Ind AS financial

statements, whether due to fraud or error. In making those risk

assessments, the auditor considers internal financial control

relevant to the Parent's preparation of the consolidated Ind AS

financial statements that give a true and fair view in order to design

audit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of

the accounting policies used and the reasonableness of the

accounting estimates made by the Parent's Board of Directors, as

well as evaluating the overall presentation of the consolidated Ind

AS financial statements.

We believe that the audit evidence obtained by us and the audit

evidence obtained by the other auditors in terms of their reports

referred to in sub-paragraphs (a) of the Other Matters paragraph

below, is sufficient and appropriate to provide a basis for our audit

opinion on the consolidated Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according

to the explanations given to us and based on the consideration

of reports of the other auditors on separate financial statements/

financial information of the subsidiaries, associates and joint

ventures referred to below in the Other Matters paragraph,

the aforesaid consolidated Ind AS financial statements give

the information required by the Act in the manner so required

and give a true and fair view in conformity with the Ind AS and

other accounting principles generally accepted in India, of the

consolidated state of affairs of the Group as at 31 March, 2018,

and their consolidated profit, consolidated total comprehensive

income, their consolidated cash flows and consolidated statement

of changes in equity for the year ended on that date.

Other Matters

a) We did not audit the financial statements / financial information

of 2 subsidiaries, whose financial statements/ financial information

reflect total assets of ` 541 million as at 31 March, 2018, total

revenues of ` 868 million and net cash outflows amounting to

` 67 million for the year ended on that date, as considered in the

consolidated Ind AS financial statements. The consolidated Ind

AS financial statements also include the Group's share of net profit

of ` 802 million for the year ended 31 March, 2018, as considered

in the consolidated Ind AS financial statements, in respect of 2

193

associates, whose financial statements / financial information

have not been audited by us. These financial statements /

financial information have been audited by other auditors whose

reports have been furnished to us by the Management and our

opinion on the consolidated Ind AS financial statements, in so far

as it relates to the amounts and disclosures included in respect

of these subsidiaries and associates, and our report in terms of

sub-section (3) of Section 143 of the Act, in so far as it relates to

the aforesaid subsidiaries, and associates is based solely on the

reports of the other auditors.

b) The consolidated Ind AS financial statements also include the

Group's share of net profit of ` 832 million for the year ended 31

March, 2018, as considered in the consolidated Ind AS financial

statements, in respect of 11 associates and 2 joint ventures,

whose financial statements / financial information have not been

audited by us. These financial statements / financial information

are unaudited and have been furnished to us by the Management

and our opinion on the consolidated Ind AS financial statements,

in so far as it relates to the amounts and disclosures included in

respect of these joint ventures and associates, is based solely on

such unaudited financial statements / financial information. In our

opinion and according to the information and explanations given

to us by the Management, these financial statements/ financial

information are not material to the Group.

Our opinion on the consolidated Ind AS financial statements above

and our report on Other Legal and Regulatory Requirements

below, is not modified in respect of the above matters with

respect to our reliance on the work done and the reports of the

other auditors and the financial statements / financial information

certified by the Management.

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act, based on our audit

and on the consideration of the report of the other auditors on

separate financial statements and the other financial information of

subsidiaries, associates and joint venture companies incorporated

in India, referred in the Other Matters paragraph above we report,

to the extent applicable that:

(a) We have sought and obtained all the information and

explanations which to the best of our knowledge and belief

were necessary for the purposes of our audit of the aforesaid

consolidated Ind AS financial statements.

(b) In our opinion, proper books of account as required by law

relating to preparation of the aforesaid consolidated Ind AS

financial statements have been kept so far as it appears from our

examination of those books and the reports of the other auditors.

(c) The Consolidated Balance Sheet, the Consolidated Statement

of Profit and Loss (including Other Comprehensive Income), the

Consolidated Cash Flow Statement and Consolidated Statement

of Changes in Equity dealt with by this Report are in agreement

with the relevant books of account maintained for the purpose of

preparation of the consolidated Ind AS financial statements.

(d) In our opinion, the aforesaid consolidated Ind AS financial

statements comply with the Indian Accounting Standards

prescribed under Section 133 of the Act.

(e) On the basis of the written representations received from

the directors of the Parent as on 31 March, 2018 taken on record

by the Board of Directors of the Parent and the reports of the

statutory auditors of its subsidiary companies and associate

companies incorporated in India, none of the directors of the

Group companies and its associate companies incorporated in

India is disqualified as on 31st March 2018 from being appointed

as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial

controls over financial reporting and the operating effectiveness

of such controls, refer to our separate Report in “Annexure A”,

which is based on the auditors’ reports of the Parent, subsidiary

companies and associate companies incorporated in India. Our

report expresses an unmodified opinion on the adequacy and

operating effectiveness of internal financial controls over financial

reporting of those companies for the reasons stated therein.

(g) With respect to the other matters to be included in the Auditor's

Report in accordance with Rule 11 of the Companies (Audit and

Auditor's) Rules, 2014, as amended, in our opinion and to the best

of our information and according to the explanations given to us:

i. The consolidated Ind AS financial statements disclose the

impact of pending litigations on the consolidated financial position

of the Group, its associates and joint ventures. Refer to note 40 to

consolidated Ind AS financial statements.

ii. Provision has been made in the consolidated Ind AS financial

statements, as required under the applicable law or accounting

standards, for material foreseeable losses, if any, on long-term

contracts including derivative contracts.

iii. There has been no delay in transferring amounts required

to be transferred, to the Investor Education and Protection Fund

by the Parent and its subsidiary companies, associate companies

and joint venture companies incorporated in India.



Jitendra Agarwal

Partner


Place: New Delhi


Financial Statements (Consolidated) | Independent Auditor’s Report

194

Annexure “A” to The Independent Auditor’s Report

(Referred to in paragraph (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

In conjunction with our audit of the consolidated Ind AS financial

statements of the Company as of and for the year ended 31 March,

2018, we have audited the internal financial controls over financial

reporting of Maruti Suzuki India Limited (hereinafter referred to as

“Parent”) and its subsidiary companies, its associate companies

and joint ventures, which are companies incorporated in India, as

of that date.

Management’s Responsibility for Internal Financial Controls

The respective Board of Directors of the Parent, its subsidiary

companies, its associate companies and joint ventures, which are

companies incorporated in India, are responsible for establishing

and maintaining internal financial controls based on “the internal

control over financial reporting criteria established by the

respective Companies considering the essential components of

internal control stated in the Guidance Note on Audit of Internal

Financial Controls Over Financial Reporting issued by the Institute

of Chartered Accountants of India (ICAI)”.These responsibilities

include the design, implementation and maintenance of adequate

internal financial controls that were operating effectively for

ensuring the orderly and efficient conduct of its business, including

adherence to the respective company’s policies, the safeguarding

of its assets, the prevention and detection of frauds and errors,

the accuracy and completeness of the accounting records, and

the timely preparation of reliable financial information, as required

under the Companies Act, 2013.


Our responsibility is to express an opinion on the internal financial

controls over financial reporting of the Parent, its subsidiaries,

its associates and its joint ventures, which are companies

incorporated in India, based on our audit. We conducted our audit

in accordance with the Guidance Note on Audit of Internal Financial

Controls Over Financial Reporting (the “Guidance Note”) issued by

the Institute of Chartered Accountants of India and the Standards

on Auditing prescribed under Section 143(10) of the Companies

Act, 2013, to the extent applicable to an audit of internal financial

controls. Those Standards and the Guidance Note require that we

comply with ethical requirements and plan and perform the audit

to obtain reasonable assurance about whether adequate internal

financial controls over financial reporting was established and

maintained and if such controls operated effectively in all material

respects.

Our audit involves performing procedures to obtain audit evidence

about the adequacy of the internal financial controls system over

financial reporting and their operating effectiveness. Our audit

of internal financial controls over financial reporting included

obtaining an understanding of internal financial controls over

financial reporting, assessing the risk that a material weakness

exists, and testing and evaluating the design and operating

effectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor’s judgement,

including the assessment of the risks of material misstatement of

the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the

audit evidence obtained by the other auditors of the subsidiary

companies and associate companies, which are companies

incorporated in India, in terms of their reports referred to in the

Other Matters paragraph, is sufficient and appropriate to provide a

basis for our audit opinion on the internal financial controls system

over financial reporting of the Parent, its subsidiary companies, its

associate companies and its joint ventures, which are companies

incorporated in India.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is

a process designed to provide reasonable assurance regarding

the reliability of financial reporting and the preparation of financial

statements for external purposes in accordance with generally

accepted accounting principles. A company's internal financial

control over financial reporting includes those policies and

procedures that (1) pertain to the maintenance of records that, in

reasonable detail, accurately and fairly reflect the transactions and

dispositions of the assets of the company; (2) provide reasonable

assurance that transactions are recorded as necessary to

permit preparation of financial statements in accordance with

generally accepted accounting principles, and that receipts and

expenditures of the company are being made only in accordance

with authorisations of management and directors of the company;

and (3) provide reasonable assurance regarding prevention or

timely detection of unauthorised acquisition, use, or disposition

of the company's assets that could have a material effect on the


195

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls

over financial reporting, including the possibility of collusion or

improper management override of controls, material misstatements

due to error or fraud may occur and not be detected. Also,

projections of any evaluation of the internal financial controls over

financial reporting to future periods are subject to the risk that

the internal financial control over financial reporting may become

inadequate because of changes in conditions, or that the degree

of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to

the explanations given to us and based on the consideration of

the reports of the other auditors referred to in the Other Matters

paragraph below, the Parent, its subsidiary companies, its

associate companies and joint ventures, which are companies

incorporated in India, have, in all material respects, an adequate

internal financial controls system over financial reporting and such

internal financial controls over financial reporting were operating

effectively as at 31 March, 2018, based on “the internal control

over financial reporting criteria established by the respective

companies considering the essential components of internal

control stated in the Guidance Note on Audit of Internal Financial

Controls Over Financial Reporting issued by the Institute of

Chartered Accountants of India”.

Other Matter

Our aforesaid report under Section 143(3)(i) of the Act on the

adequacy and operating effectiveness of the internal financial

controls over financial reporting insofar as it relates to 2 subsidiary

companies and 2 associate companies which are companies

incorporated in India, is based solely on the corresponding

reports of the auditors of such companies incorporated in India.

Our opinion is not modified in respect of the above matter.



Jitendra Agarwal

Partner


Place: New Delhi


196


Financial Statements (Consolidated) | Balance Sheet I Statement of Profit and Loss

Consolidated Balance SheetAs at March 31, 2018

Particulars Notes

No.As at

31.03.2018As at

31.03.2017

ASSETSNon-current assetsProperty, plant and equipment 4 130,771 129,377

Capital work-in-progress 4 21,321 12,523

Intangible assets 5 3,117 3,730

Financial assets

Investments 6 349,058 269,718

Loans 7 2 3

Other financial assets 9 328 241

Other non-current assets 12 18,587 16,033

Total non-current assets 523,184 431,625 Current assetsInventories 10 31,602 32,637

Financial assets

Investments 6 12,173 21,788

Trade receivables 8 14,654 12,026

Cash and bank balances 11 740 235

Loans 7 30 25

Other financial assets 9 2,846 951

Current tax assets (net) 22 4,115 4,910

Other current assets 12 13,140 15,408

Total current assets 79,300 87,980 Total assets 602,484 519,605 EQUITY AND LIABILITIESEquity Equity share capital 13 1,510 1,510

Other equity 14 424,084 369,241

Equity attributable to owners of the Company 425,594 370,751 Non controlling interest 15 161 154

Total equity 425,755 370,905 LiabilitiesNon-current liabilitiesFinancial liabilities

Borrowings 16 100 -

Provisions 18 265 219

Deferred tax liabilities (net) 19 6,020 5,058

Other non-current liabilities 20 15,859 11,055

Total non-current liabilities 22,244 16,332 Current liabilitiesFinancial liabilities

Borrowings 16 1,108 4,836

Trade payables

Total outstanding dues of micro, small and medium enterprises 21 711 832

Total outstanding dues of creditors other than micro, small and medium enterprises 21 104,282 82,860

Other financial liabilities 17 13,338 13,028

Provisions 18 5,609 4,498

Current tax liabilities (net) 22 8,541 8,036

Other current liabilities 20 20,896 18,278

Total current liabilities 154,485 132,368 Total liabilities 176,729 148,700 Total equity and liabilities 602,484 519,605

The accompanying notes are forming part of these consolidated financial statements



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Consolidated Statement of Profit and Lossfor the year ended March 31, 2018



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Particulars Notes

No.For the Year ended

31.03.2018For the Year ended

31.03.2017

I Revenue from operations 23 820,411 773,164

II Other income 24 20,458 22,896

III Total Income (I+II) 840,869 796,060 IV Expenses

Cost of materials consumed 25.1 449,432 426,279

Purchases of stock-in-trade 100,021 44,936

Changes in inventories of finished goods, work-in-progress and stock-in-trade 25.2 408 (3,793)

Excise duty 44 22,317 92,314

Employee benefits expense 26 28,634 23,603



Other expenses 29 99,956 87,280

Vehicles / dies for own use (991) (1,036)

Total expenses (IV) 730,833 696,516 V Share of profit of associates 1,366 1,493

VI Share of profit of joint ventures 267 235

VII Profit before tax (III - IV + V + VI) 111,669 101,272 VIII Tax expense

Current tax 30 33,505 23,369

Deferred tax 30 (643) 2,793

32,862 26,162

IX Profit for the period (VII - VIII) 78,807 75,110 X Other Comprehensive Income

A (i) Items that will not be reclassified to profit or loss

(a) gain / (loss) of defined benefit obligation 14.5 (197) (159)

(b) gain / (loss) on change in fair value of equity instruments 14.6 3,470 2,361

3,273 2,202

A (ii) Income tax relating to items that will not be reclassified to profit or loss 30 39 61

B (i) Items that will be reclassified to profit or loss

(a) effective portion of gain / (loss) on hedging instruments in a cash flow hedge 14.7 (2) (72)

(2) (72)

B (ii) Income tax relating to items that will be reclassified to profit or loss 30 1 25

Total Other Comprehensive Income (A (i+ii)+B(i+ii)) 3,311 2,216

XI Total Comprehensive Income for the period (IX + X) 82,118 77,326 Profit for the year attributed to: Owners of the Company 78,800 75,099

Non controlling interest 7 11

78,807 75,110 Other comprehensive income for the year attributable to: Owners of the Company 3,311 2,217

Non controlling interest - (1)

3,311 2,216 Total comprehensive income for the year attributable to: Owners of the Company 82,111 77,316


82,118 77,326 Earnings per equity share (`) 32

Basic 260.88 248.64

Diluted 260.88 248.64


198


Financial Statements (Consolidated) | Statement of Changes in Equity I Statement of Cash Flows

Consolidated Statement of Changes in Equityfor the year ended March 31, 2018

a. Equity share capital

AmountBalance at April 01, 2016 1,510 Changes in equity share capital during the year -

Balance at March 31, 2017 1,510 Changes in equity share capital during the year -


b. Other equity

Reserves and Surplus Items of other comprehensive income

Reserves

created on

amalgamation

Securities

premium

reserve

Capital

reserves

General

reserve

Retained

earnings

Equity instrument

through other

comprehensive

income

Effective

portion of cash

flow hedge

Attributable

to owners of

the company

Non

controlling

interest

Total

Balance at April 01, 2016 9,153 4,241 2 29,309 257,353 4,545 47 304,650 144 304,794

Profit for the year - - - - 75,099 - - 75,099 11 75,110

Other comprehensive

income for the year, net of

income tax

- - - - (100) 2,364 (47) 2,217 (1) 2,216


- - - - 74,999 2,364 (47) 77,316 10 77,326

Payment of dividend

(` 35 per share)

- - - - (10,573) - - (10,573) - (10,573)

Tax on dividend - - - - (2,152) - - (2,152) - (2,152)

Balance at March 31, 2017 9,153 4,241 2 29,309 319,627 6,909 - 369,241 154 369,395

Profit for the year - - - - 78,800 - - 78,800 7 78,807

Other comprehensive

income for the year, net of

income tax

- - - - (132) 3,444 (1) 3,311 - 3,311


- - - - 78,668 3,444 (1) 82,111 7 82,118

Payment of dividend

(` 75 per share)

- - - - (22,656) - - (22,656) - (22,656)

Tax on dividend - - - - (4,612) - - (4,612) - (4,612)

Balance at March 31, 2018 9,153 4,241 2 29,309 371,027 10,353 (1) 424,084 161 424,245




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Consolidated Statement of Cash Flowsfor the year ended March 31, 2018

Particulars Notes

No. For the year


ended 31.03.2017

A. Cash flow from Operating Activities: Profit before tax 111,669 101,272

Adjustments for:Share of profit of associates (1,366) (1,493)

Share of profit of joint ventures (267) (235)



Interest income 24 (682) (378)

Dividend income 24 (200) (129)

Net loss on sale / discarding of property, plant and equipment 29 545 632

Net gain on sale of investments in associates 24 - (99)

Net gain on sale of investments in debt mutual funds 24 (964) (614)

Fair valuation gain on investment in debt mutual funds 24 (18,612) (21,403)

Liabilities no longer required written back 23 (852) (35)

Unrealised foreign exchange (gain)/ loss 34 (320)

Operating Profit before Working Capital changes 120,361 104,131 Adjustments for changes in Working Capital : - (Increase)/decrease in loans (non-current) 7 1 1

- (Increase)/decrease in other financial assets (non-current) 9 (87) (7)

- (Increase)/decrease in other non-current assets 12 (24) (320)

- (Increase)/decrease in inventories 10 1,035 (1,311)

- (Increase)/decrease in trade receivables 8 (2,619) 1,215

- (Increase)/decrease in loans (current) 7 (5) 6

- (Increase)/decrease in other financial assets (current) 9 (1,787) 639

- (Increase)/decrease in other current assets 12 2,071 1,044

- Increase/(decrease) in non-current provisions 18 46 71

- Increase/(decrease) in other non-current liabilities 20 4,804 2,980

- Increase/(decrease) in trade payables 21 21,280 9,788

- Increase/(decrease) in other financial liabilities (current) 17 (1,262) 680

- Increase/(decrease) in current provisions 18 1,111 504

- Increase/(decrease) in other current liabilities 20 3,514 6,628

Cash generated from Operating Activities 148,439 126,049 - Income taxes paid (net of tax deducted at source) (30,560) (23,229)

Net Cash from / (used in) Operating Activities 117,879 102,820 B. Cash flow from Investing Activities:

Payments for purchase of property, plant and equipment and capital work in progress 4 (39,116) (32,524)

Payments for purchase of intangible assets 5 - (1,388)

Proceeds from sale of property, plant and equipment 4 264 164

Proceeds from sale of investment in associate company 6 - 219

Proceeds from sale of debt mutual funds 6 425,643 118,393

Payments for purchase of debt mutual funds 6 (470,689) (177,155)

Deposits with banks not considered as cash and cash equivalents (placed) / matured 11 - 68

Interest received 24 681 362

Dividend received 24 200 129

Net Cash from / (used in) Investing Activities (83,017) (91,732)

200


Financial Statements (Consolidated) | Cash Flow Statement I Notes

Particulars Notes

No. For the year


ended 31.03.2017

C. Cash flow from Financing Activities:Proceeds from short term borrowings 16 1,108 4,836

Repayment of short term borrowings 16 (4,836) (774)

Proceeds from Long Term borrowings 16 100 -

Repayment of long term borrowings 16 - (1,535)

Finance cost paid 27 (3,465) (1,095)

Payment of dividend on equity shares 14.5 (22,656) (10,573)

Related income tax 14.5 (4,612) (2,152)

Net Cash from / (used in) Financing Activities (34,361) (11,293)Net Increase/(Decrease) in cash & cash equivalents 501 (205) Cash and cash equivalents at the beginning of the year 227 432 Cash and cash equivalents at the end of the year 728 227 Cash and cash equivalents comprises:Cash and cheques in hand 11 39 8

Balance with Banks 11 689 219

728 227

Consolidated Statement of Cash Flowsfor the year ended March 31, 2018

Amendment to Ind AS 7 - Statement of Cash Flows Effective April 1, 2017, the Company adopted the amendment to Ind AS 7 - Statement of Cash Flows, which require the entities to

provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including

both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing

balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement. The adoption of

amendment did not have any impact on the financial statements.




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201


Notes to the Consolidated Financial Statements

1. General Information

Maruti Suzuki India Limited ("the Company") is a public limited

company incorporated and domiciled in India, listed on the

Bombay Stock Exchange (BSE) and the National Stock Exchange

(NSE). The address of its registered office is #1, Nelson Mandela

Road, Vasant Kunj, New Delhi - 110070. The Company is a

subsidiary of Suzuki Motor Corporation, Japan. The principal

activities of the Company and its subsidiaries are manufacturing,

purchase and sale of motor vehicles, components and spare

parts. The other activities of the Company comprise facilitation

of pre-owned car sales, fleet management and car financing. The

Company together with its subsidiaries is herein referred to as

"the Group".











2. Significant Accounting Policies

2.1 Statement of compliance The financial statements have been prepared as a going concern

in accordance with Indian Accounting Standards (Ind AS) notified

under the Section 133 of the Companies Act, 2013 ("the Act")

read with the Companies (Indian Accounting Standards) Rules,

2015 and other relevant provisions of the Act.

2.2 Basis of preparation and presentation The financial statements have been prepared on the historical

cost convention on accrual basis except for certain financial

instruments which are measured at fair value at the end of

each reporting period, as explained in the accounting policies

mentioned below. Historical cost is generally based on the

fair value of the consideration given in exchange of goods or

services.

All assets and liabilities have been classified as current or non-

current according to the Group's operating cycle and other

criteria set out in the Act. Based on the nature of products

and the time between the acquisition of assets for processing

and their realisation in cash and cash equivalents, the Group

has ascertained its operating cycle as twelve months for the

purpose of current and non-current classification of assets and

liabilities.

The principal accounting policies are set out below.

2.3 Basis of Consolidation and equity accounting (i) Subsidiaries

Subsidiaries are entities over which the Group has control. The

Group controls an entity when the Group is exposed to, or has

rights to, variable returns from its involvement with the entity

and has the ability to affect those returns through its power to

direct the relevant activities of the entity. Subsidiaries are fully

consolidated from the date on which control is transferred to the

Group. They are deconsolidated from the date the control ceases.

The Group combines the financial statements of the parent

and its subsidiaries line by line adding together like items of

assets, liabilities, equity, income and expenses. Intercompany

transactions, balance and unrealised gains on transactions

between Group companies are eliminated. Accounting policies

of subsidiaries have been changed where necessary to ensure

consistency with the policies adopted by the Group.

Non-controlling interests in the results and equity of subsidiaries

are shown separately in the consolidated statement of profit and

loss, consolidated statement of change in equity and balance

sheet respectively.

(ii) Associates

An associate is an entity over which the Group has significant

influence. Significant influence is the power to participate in

the financial and operating policy decisions of the investee but

is not control or joint control over those policies. Investments

in associates are accounted for using the equity method of

accounting (see note (iv) below), after initially being recognised

at cost.

(iii) Joint Ventures

A joint venture is a joint arrangement whereby the parties that

have joint control of the arrangement have rights to the net assets

of the joint arrangement. Joint control is the contractually agreed

sharing of control of an arrangement, which exists only when

decisions about the relevant activities require unanimous consent

of the parties sharing control.

Interests in joint ventures are accounted for using the equity

method of accounting (see note(iv) below), after initially being

recognised at cost in the consolidated balance sheet.

(iv) Equity method

Under the equity method of accounting, the investments are

initially recognised at cost and adjusted thereafter to recognise

the group's share of the post acquisition profits or losses of

the investee in profit and loss, and the Group's share of other

comprehensive income of the investee in other comprehensive

income. Dividends received or receivable from associates and

joint ventures are recognised as a reduction in the carrying

amount of the investment.



Financial Statements (Consolidated) | Notes

202

When the Group's share of losses in equity-accounted investments

equals or exceeds its interest in the entity, including any other

unsecured long term receivables, the Group does not recognise

further losses, unless it has incurred obligations or made payments

on behalf of the other entity.

Unrealised gains on transactions between the Group and its

associates and joint ventures are eliminated to the extent of

the Group's interest in these entities. Unrealised losses are

also eliminated unless the transaction provides evidence of an

impairment of the asset transferred.

The carrying amount of equity accounted investments are tested

for impairment.

(v) Changes in ownership interests

The Group treats transactions with non-controlling interests

which does not result in loss of control as transaction with equity

owners of the group. A change in ownership interest results in an

adjustment between the carrying amounts of the controlling and

non-controlling interests to reflect their relative interests in the

subsidiary. Any difference between the amount of adjustment to

non-controlling interests and any consideration paid or received

is recognised within equity.

When the Group ceases to consolidate or equity account for an

investment because of loss of control, joint control or significant

influence, any retained interest in the entity is remeasured to its

fair value with the change in carrying amount recognised in profit

or loss. The fair value becomes the initial carrying amount for the

purposes of subsequent accounting for the retained interest as an

associate, joint venture or financial asset. In addition, any amounts

previously recognised in other comprehensive income in respect

of that entity are accounted for as if the Group had directly

disposed of related assets or liabilities. This may mean that

amounts previously recognised in other comprehensive income

are reclassified to profit or loss.

If the ownership interest in a joint venture or an associate is

reduced but joint control or significant influence is retained, only

a proportionate share of the amounts previously recognised in

other comprehensive income are reclassified to profit or loss

where appropriate.

2.4 Going concern The board of directors have considered the financial position of

the Group at 31 March 2018 and the projected cash flows and

financial performance of the Group for at least twelve months

from the date of approval of these financial statements as well as

planned cost and cash improvement actions, and believe that the

plan for sustained profitability remains on course.

The board of directors have taken actions to ensure that

appropriate long-term cash resources are in place at the date of

signing the accounts to fund the Group's operations.

2.5 Use of estimates and judgements The preparation of financial statements in conformity with Ind

AS requires management to make judgements, estimates and

assumptions that affect the application of accounting policies and

the reported amount of assets, liabilities, income, expenses and

disclosures of contingent assets and liabilities at the date of these

financial statements and the reported amount of revenues and

expenses for the years presented. Actual results may differ from

the estimates.

Estimates and underlying assumptions are reviewed at each

balance sheet date. Revisions to accounting estimates are

recognised in the period in which the estimates are revised and

future periods affected.

In particular, information about significant areas of estimation,

uncertainty and critical judgements in applying accounting policies

that have the most significant effect on the amounts recognised in

the financial statements are included in the following notes:

Note 33 : Provision for employee benefits

Note 18 & 40 : Provision for litigations

Note 18 : Provision for warranty and product recall

Note 4 : Property, Plant and Equipment - Useful

economic life

2.6 Revenue recognition Revenue is measured at the fair value of the consideration

received or receivable. Amounts disclosed as revenue are

inclusive of excise duty and net of returns, trade allowances, sales

incentives, goods & service tax and value added taxes.

The Group recognises revenue when the amount of revenue and

its related cost can be reliably measured and it is probable that

future economic benefits will flow to the entity and specific criteria

in relation to significant risk and reward and degree of managerial

involvement associated with ownership or effective control have

been met for each of the Group's activities as described below.

The Group bases its estimates on historical results, taking into

consideration the type of customer, the type of transactions and

the specifics of each arrangement.

2.6.1 Sale of goods

Domestic and export sales are accounted on transfer of

significant risks and rewards to the customer and also no

continuing involvement of management to the degree associated

with ownership nor effective control over the goods sold which

takes place on dispatch of goods from the factory and the port

respectively.

2.6.2 Income from services

Income from services are accounted over the period of rendering

of services.



203

2.6.3 Income from royalty

Revenue from royalty is recognised on an accrual basis in

accordance with the substance of the relevant arrangement.

2.6.4 Dividend and interest income

Dividend income from investments is recognised when the

shareholders' right to receive payment has been established

(provided that it is probable that the economic benefits will flow to

the Group and the amount of income can be measured reliably).

Interest income from a financial asset is recognised when it is

probable that the economic benefits will flow to the Group and

the amount of income can be measured reliably.

2.7 Leasing Leases are classified as finance leases whenever the terms of the

lease transfer substantially all the risks and rewards of ownership

to the lessee. All other leases are classified as operating leases.

2.7.1 The Group as lessor

Amounts due from lessees under finance leases are recognised

as receivables at the amount of the Group's net investment in the

leases. Finance lease income is allocated to accounting periods

so as to reflect a constant periodic rate of return on the Group's

net investment outstanding in respect of the leases.

Rental income from operating leases is recognised on a straight-



inflation to compensate for the Group's expected inflationary cost



2.7.2 The Group as lessee

Assets held under finance leases are initially recognised as assets

of the Group at their fair value at the inception of the lease or, if

lower, at the present value of the minimum lease payments. The

corresponding liability to the lessor is included in the balance

sheet as a finance lease obligation.

Lease payments are apportioned between finance expenses

and reduction of the lease obligation so as to achieve a constant

rate of interest on the remaining balance of the liability. Finance

expenses are recognised immediately in profit or loss, unless they

are directly attributable to qualifying assets, in which case they

are capitalised in accordance with the Group's general policy on

borrowing costs (see note 2.9 below).

Rental expense from operating leases is recognised on a straight-



inflation to compensate for the lessor's expected inflationary cost



Upfront amount paid for land taken on lease is amortised over the

period of lease.

2.8 Foreign currencies 2.8.1 Functional and presentation currency

Items included in the financial statements are measured using the

currency of the primary economic environment in which the Group

operates (‘the functional currency’). The financial statements are

presented in Indian rupee (`), which is the group’s functional and

presentation currency.

2.8.2 Transactions and balances

Foreign currency transactions are translated into the functional

currency using the exchange rates at the dates of the transactions.

Foreign exchange gains and losses resulting from the settlement

of such transactions and from the translation of monetary

assets and liabilities denominated in foreign currencies at year

end exchange rates are generally recognised in profit or loss.

They are deferred in equity if they relate to qualifying cash flow

hedges.

2.9 Borrowing costs

Borrowing costs directly attributable to the acquisition,

construction or production of qualifying assets, which are assets

that necessarily take a substantial period of time to get ready for

their intended use or sale, are added to the cost of those assets,

until such time as the assets are substantially ready for their

intended use or sale.

Interest income earned on the temporary investment of specific

borrowings pending their expenditure on qualifying assets are

deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in profit or loss in the

period in which they are incurred.

2.10 Employee benefits 2.10.1 Short-term obligations

Liabilities for wages and salaries including non-monetary benefits

that are expected to be settled within the operating cycle after

the end of the period in which the employees render the related

services are recognised in the period in which the related services

are rendered and are measured at the undiscounted amount

expected to be paid.

2.10.2 Other long-term employee benefit obligations

Liabilities for leave encashment and compensated absences

which are not expected to be settled wholly within the operating

cycle after the end of the period in which the employees render

the related service are measured at the present value of the

estimated future cash outflows which is expected to be paid using

the projected unit credit method. The benefits are discounted

using the market yields at the end of the reporting period on

Government bonds that have terms approximating to the terms of

the related obligation. Remeasurements as a result of experience




204


in profit or loss.

2.10.3 Post-employment obligations

Defined benefit plans

The Group has defined benefit plans namely gratuity, provident

fund and retirement allowance for employees. The gratuity fund

and provident fund are recognised by the income tax authorities

and are administered through trusts set up by the Group. Any

shortfall in the size of the fund maintained by the trust is additionally

provided for in profit or loss.

The liability or asset recognised in the balance sheet in respect of

gratuity plans is the present value of the defined benefit obligation

at the end of the reporting period less the fair value of plan assets.

The defined benefit obligation is calculated annually by actuaries

using the projected unit credit method.

The present value of the defined benefit obligation is determined

by discounting the estimated future cash outflows by reference to

market yields at the end of the reporting period on government

bonds that have terms approximating to the terms of the related

obligation.

The net interest cost is calculated by applying the discount rate to

the net balance of the defined benefit obligation and the fair value

of plan assets. This cost is included in employee benefit expense

in profit or loss.

Remeasurement gains and losses arising from experience


in the period in which they occur, directly in other comprehensive

income. They are included in retained earnings in the statement of

changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation

resulting from plan amendments or curtailments are recognised

immediately in profit or loss as past service cost.

Defined contribution plans

The Group has defined contribution plans for post-employment

benefit namely the superannuation fund which is recognised by

the income tax authorities. This fund is administered through a

trust set up by the Group and the Group’s contribution thereto

is charged to profit or loss every year. The Group has no

further payment obligations once the contributions have been

paid. The Group also maintains an insurance policy to fund

a post-employment medical assistance scheme, which is a

defined contribution plan. The Group’s contribution to State

Plans namely Employees’ State Insurance Fund and Employees’

Pension Scheme are charged to the statement of profit and loss

every year.

Termination benefits

A liability for the termination benefit is recognised at the earlier

of when the Group can no longer withdraw the offer of the

termination benefit and when the Group recognises any related

restructuring costs.

2.11 Taxation Income tax expense represents the sum of the tax currently

payable and deferred tax.

2.11.1 Current tax

The tax currently payable is based on taxable profit for the

year. Taxable profit differs from 'profit before tax' as reported in

the statement of profit and loss because of items of income or

expense that are taxable or deductible in other years and items

that are never taxable or deductible. The group's current tax is

calculated using tax rates that have been enacted or substantively

enacted by the end of the reporting period.

2.11.2 Deferred tax

Deferred tax is recognised on temporary differences between

the carrying amounts of assets and liabilities in the financial

statements and the corresponding tax bases used in the

computation of taxable profits. Deferred tax liabilities are

recognised for all taxable temporary differences. Deferred tax

assets are recognised for all deductible temporary differences

and incurred tax losses to the extent that it is probable that taxable

profits will be available against which those deductible temporary

differences can be utilised. Such deferred tax assets and liabilities

are not recognised if the temporary difference arises from the

initial recognition (other than in a business combination) of assets

and liabilities in a transaction that affects neither the taxable profit

nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end

of each reporting period and reduced to the extent that it is no

longer probable that sufficient taxable profits will be available to

allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates

that are expected to apply in the period in which the liability is

settled or the asset realised, based on tax rates (and tax laws) that

have been enacted or substantively enacted by the end of the

reporting period.

The measurement of deferred tax liabilities and assets reflects the

tax consequences that would follow from the manner in which the

Group expects, at the end of the reporting period, to recover or

settle the carrying amount of its assets and liabilities.

2.11.3 Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss,

except when they relate to items that are recognised in other

comprehensive income or directly in equity, in which case, the

income taxes are also recognised in other comprehensive income

or directly in equity respectively.

2.12 Property, plant and equipment Property, plant and equipment are stated at cost of acquisition



205

or construction less accumulated depreciation less accumulated

impairment, if any. Freehold land is measured at cost and is not

depreciated.

Such assets are classified to the appropriate categories of

property, plant and equipment when completed and ready for

intended use.

Subsequent costs are included in the asset's carrying amount or

recognised as a separate asset, as appropriate, only when it is

probable that future economic benefits associated with the item

will flow to the Group and the cost of the item can be measured

reliably. The carrying amount of any component accounted for as

a separate asset is derecognised when replaced. Other repairs

and maintenance of revenue nature are charged to profit or loss

during the reporting period in which they are incurred.

An item of property, plant and equipment is derecognised upon

disposal or when no future economic benefits are expected to

arise from continued use of asset. Any gain or loss arising on the

disposal or retirement of an item of property, plant and equipment

is determined as the difference between the sales proceeds and

the carrying amount of asset and recognised in profit or loss.

Depreciation methods, estimated useful lives and residual valueDepreciation is calculated using the straight-line method on a pro-

rata basis from the month in which each asset is put to use to

allocate their cost, net of their residual values, over their estimated

useful lives.

Estimated useful life of assets are as follows which is based on

technical evaluation of the useful lives of the assets:

Building 3-60 years

Plant and machinery other than Dies and Jigs 8-11 years

Dies and jigs 5 years

Electronic data processing equipment 3 years

Furniture and fixtures 10 years

Office appliances 5 years

Vehicles 8 years

The assets' residual values, estimated useful lives and depreciation

method are reviewed at the end of each reporting period, with the

effect of any changes in estimate accounted for on a prospective

basis.

All assets, the individual written down value of which at the

beginning of the year is ` 5,000 or less, are depreciated at the

rate of 100%. Assets purchased during the year costing ` 5,000

or less are depreciated at the rate of 100%.

Gains and losses on disposal are determined by comparing

proceeds with carrying amount and are credited / debited to profit

or loss.

Freehold land and Leasehold land in the nature of perpetual lease

is not amortised.

2.13 Intangible assets 2.13.1 Intangible assets acquired separately

Lump sum royalty and engineering support fee is carried at cost

which is incurred and stated in the relevant licence agreement

with the technical knowhow / engineering support provider less

accumulated amortisation and accumulated impairment losses.

Amortisation is recognised on a straight line basis over their

estimated useful lives. The estimated useful lives and amortisation

method are reviewed at end of each reporting period, with the

effect of any changes in estimate being accounted for on a

prospective basis.

2.13.2 Amortisation methods and useful lives

Lump sum royalty and engineering support fee is amortised on

a straight line basis over its estimated useful life i.e. 5 years from

the start of production of the related model. An intangible asset

is derecognised when no future economic benefits are expected

from use.

2.14 Impairment of tangible and intangible assetsAt the end of each reporting period, the Group reviews the

carrying amounts of its tangible and intangible assets to determine

whether there is any indication that those assets have suffered

an impairment loss. If any such indication exists, the recoverable

amount of the asset is estimated in order to determine the extent

of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs of

disposal and value in use. In assessing value in use, the estimated

future cash flows are discounted to their present value using a pre-

tax discount rate that reflects current market assessments of the

time value of money and the risks specific to the asset for which

the estimates of future cash flows have not been adjusted.

2.15 Inventories Inventories are valued at the lower of cost, determined on the

weighted average basis and net realisable value.

The cost of finished goods and work in progress comprises

raw materials, direct labour, other direct costs and appropriate

proportion of variable and fixed overhead expenditure, the latter

being allocated on the basis of normal operating capacity. Cost

of inventories also include all other costs incurred in bringing

the inventories to their present location and condition. Costs of

purchased inventory are determined after deducting rebates

and discounts. Net realisable value is the estimated selling price

in the ordinary course of business, less the estimated costs of

completion and the estimated costs necessary to make the sale.

Machinery spares (other than those supplied along with main

plant and machinery, which are capitalised and depreciated

accordingly) are charged to profit or loss on consumption except




206

those valued at ` 5,000 or less individually, which are charged to

revenue in the year of purchase.

2.16 Provisions and contingencies Provisions: Provisions are recognised when there is a present

obligation as a result of a past event and it is probable that an

outflow of resources embodying economic benefits will be

required to settle the obligation and there is a reliable estimate

of the amount of the obligation. Provisions are determined by

discounting the expected future cash flows at a pre tax rate that

reflects current market assessment of the time value of money and

the risks specific to the liability.

Contingent Liabilities: Contingent liabilities are disclosed when

there is a possible obligation arising from past events, the

existence of which will be confirmed only by the occurrence or

non occurrence of one or more uncertain future events not wholly

within the control of the Group or a present obligation that arises

from past events where it is either not probable that an outflow of

resources will be required to settle or a reliable estimate of the

amount cannot be made.

2.17 Financial instruments A financial instrument is any contract that gives rise to a financial

asset of one entity and a financial liability or equity instrument

of another entity. Financial assets and financial liabilities are

recognised when the Group becomes a party to the contractual

provisions of the instruments.

Financial assets and financial liabilities are initially measured at

fair value. Transaction costs that are directly attributable to the

acquisition or issue of financial instruments (other than financial

assets and financial liabilities at fair value through profit or loss)

are added to or deducted from the fair value of the financial

assets or financial liabilities, as appropriate, on initial recognition.

Transaction costs directly attributable to the acquisition of

financial assets or financial liabilities at fair value through profit

or loss are recognised immediately in profit or loss. Subsequently,

financial instruments are measured according to the category in

which they are classified.

2.18 Financial assets All purchases or sales of financial assets are recognised and

derecognised on a trade date basis. Regular way purchases

or sales are purchases or sales of financial assets that require

delivery of assets within the time frame established by regulation

or convention in the marketplace.

All recognised financial assets are subsequently measured in

their entirety at either amortised cost or fair value, depending on

the classification of the financial assets.

2.18.1 Classification of financial assets

Classification of financial assets depends on the nature and

purpose of the financial assets and is determined at the time of

initial recognition.

The Group classifies its financial assets in the following

measurement categories:

• those to be measured subsequently at fair value (either through

other comprehensive income, or through profit or loss), and

• those measured at amortised cost

The classification depends on the group’s business model for

managing the financial assets and the contractual terms of the

cash flows.


measured at amortised cost unless the asset is designated at fair

value through profit or loss under the fair value option:

• Business model test : the objective of the group's business

model is to hold the financial asset to collect the contractual cash

flows.

• Cash flow characteristic test : the contractual term of the

financial asset give rise on specified dates to cash flows that are


outstanding.


measured at fair value through other comprehensive income

unless the asset is designated at fair value through profit or loss

under the fair value option:

• business model test : the financial asset is held within a business

model whose objective is achieved by both collecting cash flows

and selling financial assets.

• cash flow characteristic test : the contractual term of the financial

asset gives rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount

outstanding.

All other financial assets are measured at fair value through profit

or loss.

2.18.2 Investments in equity instrument at fair value through

other comprehensive income(FVTOCI)

On initial recognition, the Group can make an irrevocable

election (on an instrument by instrument basis) to present the

subsequent changes in fair value in other comprehensive income

pertaining to investments in equity instrument. This election is

not permitted if the equity instrument is held for trading. These

elected investments are initially measured at fair value plus

transaction costs. Subsequently, they are measured at fair value

with gains / losses arising from changes in fair value recognised in

other comprehensive income. This cumulative gain or loss is not

reclassified to profit or loss on disposal of the investments.



207

The Group has equity investments in certain entities which are

not held for trading. The Group has elected the fair value through

other comprehensive income irrevocable option for all such

investments. Dividend on these investments are recognised in

profit or loss.

2.18.3 Financial assets at fair value through profit or

loss(FVTPL)

Investment in equity instrument are classified at fair value through

profit or loss, unless the Group irrevocably elects on initial

recognition to present subsequent changes in fair value in other

comprehensive income for investments in equity instruments

which are not held for trading.

Financial assets that do not meet the amortised cost criteria

or fair value through other comprehensive income criteria are

measured at fair value through profit or loss. A financial asset

that meets the amortised cost criteria or fair value through other

comprehensive income criteria may be designated as at fair value

through profit or loss upon initial recognition if such designation

eliminates or significantly reduces a measurement or recognition

inconsistency that would arise from measuring assets and

liabilities or recognising the gains or losses on them on different

bases.

Investments in debt based mutual funds are measured at fair

value through profit and loss.

Financial assets which are fair valued through profit or loss are

measured at fair value at the end of each reporting period, with

any gains or losses arising on remeasurement recognised in profit

or loss.

2.18.4 Trade receivables

Trade receivables are recognised initially at fair value and

subsequently measured at amortised cost less provision for

impairment.

2.18.5 Cash and cash equivalents

In the cash flow statement, cash and cash equivalents includes

cash in hand, cheques and drafts in hand, balances with bank and

deposits held at call with financial institutions, short-term highly

liquid investments with original maturities of three months or

less that are readily convertible to known amounts of cash and

which are subject to an insignificant risk of changes in value. Bank

overdrafts are shown within borrowings in current liabilities in the

balance sheet and forms part of financing activities in the cash

flow statement. Book overdraft are shown within other financial

liabilities in the balance sheet and forms part of operating activities

in the cash flow statement.

2.18.6 Impairment of financial assets

The Group assesses impairment based on expected credit losses

(ECL) model to the following :

• financial assets measured at amortised cost

• financial assets measured at fair value through other

comprehensive income

Expected credit loss are measured through a loss allowance at an

amount equal to :

• the twelve month expected credit losses (expected credit losses

that result from those default events on the financial instruments

that are possible within twelve months after the reporting date);

or

• full life time expected credit losses (expected credit losses that

result from all possible default events over the life of the financial

instrument).

For trade receivables or any contractual right to receive cash or

another financial asset that result from transactions that are within

the scope of Ind AS 18, the Group always measures the loss

allowance at an amount equal to lifetime expected credit losses.

2.18.7 Derecognition of financial assets

A financial asset is derecognised only when

• The Group has transferred the rights to receive cash flows from

the financial asset or

• Retains the contractual rights to receive the cash flows of the

financial asset, but assumes a contractual obligation to pay the

cash flows to one or more recipients.

2.18.8 Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign

currency is determined in that foreign currency and translated

at the exchange rate at the end of each reporting period. For

foreign currency denominated financial assets measured at

amortised cost or fair value through profit or loss the exchange

differences are recognised in profit or loss except for those which

are designated as hedge instrument in a hedging relationship.

Further change in the carrying amount of investments in equity

instruments at fair value through other comprehensive income

relating to changes in foreign currency rates are recognised in

other comprehensive income.

2.19 Financial liabilities and equity instruments 2.19.1 Classification of debt or equity

Debt or equity instruments issued by the Group are classified

as either financial liabilities or as equity in accordance with the

substance of the contractual arrangements and the definitions of

a financial liability and an equity instrument.

2.19.2 Equity instruments

An equity instrument is any contract that evidences a residual

interest in the assets of an entity after deducting all of its liabilities.

Equity instruments issued by the Group are recognised at the

proceeds received, net of direct issue costs.




208

2.19.3 Financial liabilities

All financial liabilities are subsequently measured at amortised

cost using the effective interest rate method or at fair value

through profit or loss.

2.19.3.1 Trade and other payables

Trade and other payables represent liabilities for goods or

services provided to the Group prior to the end of financial year

which are unpaid.

2.19.3.2 Borrowings

Borrowings are initially recognised at fair value, net of transaction

costs incurred. Borrowings are subsequently measured at

amortised cost. Any difference between the proceeds (net of

transaction costs) and the redemption amount is recognised in

profit or loss over the period of the borrowings using the effective

interest rate method.

Borrowings are removed from the balance sheet when the

obligation specified in the contract is discharged, cancelled

or expired. The difference between the carrying amount of a

financial liability that has been extinguished or transferred to

another party and the consideration paid, including any non-cash

assets transferred or liabilities assumed, is recognised in profit or

loss.

2.19.3.3 Foreign exchange gains or losses

For financial liabilities that are denominated in a foreign currency

and are measured at amortised cost at the end of each reporting

period, the foreign exchange gains and losses are determined

based on the amortised cost of the instruments and are

recognised in profit or loss.

The fair value of financial liabilities denominated in a foreign

currency is determined in that foreign currency and translated at

the exchange rate at the end of the reporting period. For financial

liabilities that are measured as at fair value through profit or loss,

the foreign exchange component forms part of the fair value gains

or losses and is recognised in profit or loss.

2.19.3.4 Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only

when, the group's obligations are discharged, cancelled or have

expired.

2.20 Derivative financial instruments

The Group enters into foreign exchange forward contracts and

certain other derivative financial instruments to manage its

exposure to foreign exchange rate risks and commodity price

risks. Further details of derivative financial instruments are

disclosed in note 34.

Derivatives are initially recognised at fair value at the date the

derivative contracts are entered into and are subsequently

remeasured to their fair value at the end of each reporting

period. Derivatives are carried as financial assets when the fair

value is positive and as financial liabilities when the fair value is

negative. The resulting gain or loss is recognised in profit or loss

immediately unless the derivative is designated and effective as a

hedging instrument which is recognised in other comprehensive

income (net of tax) and presented as a separate component of

equity which is later reclassified to profit or loss when the hedge

item affects profit or loss.

2.20.1 Embedded derivatives

Derivatives embedded in a host contract that is an asset within

the scope of Ind AS 109 are not separated. Financial assets with

embedded derivatives are considered in their entirety when

determining whether their cash flows are solely payment of

principal and interest.

Derivatives embedded in all other host contract are separated

only if the economic characteristics and risks of the embedded

derivative are not closely related to the economic characteristics

and risks of the host and are measured at fair value through

profit or loss. Embedded derivatives closely related to the host

contracts are not separated.

2.21 Hedge accounting The Group designates certain hedging instruments, in respect

of foreign currency risk, as cash flow hedges. Hedges of foreign

exchange risk on firm commitments are accounted for as cash

flow hedges.

At the inception of the hedge relationship, the Group documents

the relationship between the hedging instrument and the hedged

item, along with its risk management objectives and its strategy

for undertaking various hedge transactions. Furthermore, at the

inception of the hedge and on an on-going basis, the Group

documents whether the hedging instrument is highly effective in

offsetting changes in fair values or cash flows of the hedged item

attributable to the hedged risk.

Changes in the fair value of these contracts that are designated

and effective as hedges of future cash flows are recognised in

other comprehensive income (net of tax) and the ineffective

portion is recognised immediately in the profit or loss. Amount

accumulated in equity are reclassified to the profit or loss in the

periods in which the forecasted transaction occurs.

Hedge accounting is discontinued when the hedging instrument

expires or is sold, terminated, or exercised, or no longer qualifies

for hedge accounting. For forecast transactions, any cumulative

gain or loss on the hedging instrument recognised in other equity

is retained there until the forecast transaction occurs.

Note 34 sets out details of the fair values of the derivative

instruments used for hedging purposes.

2.22 Offsetting Financial Instruments Financial assets and liabilities are offset and the net amount is

reported in the balance sheet where there is a legally enforceable



209

right to offset the recognised amounts and there is an intention

to settle on a net basis or realise the asset and settle the

liability simultaneously. The legally enforceable right must not

be contingent on future events and must be enforceable in the

normal course of business and in the event of default, insolvency

or bankruptcy of the Group or the counterparty.

2.23 Government Grant Government grants are recognised where there is

reasonable assurance that the Group will comply with the

conditions attaching to them and the grants will be received.

Government grants are recognised in statement of profit and

loss on a systematic basis over the periods in which the company

recognises as expense the related cost for which the grants are

intended to compensate.

2.24 Earning Per Share Basic earning per share has been computed by dividing the net

income by the weighted average number of shares outstanding

during the year. Diluted earning per share has been computed

using the weighted average number of shares and diluted potential

shares, except where the result would be anti-dilutive.

2.25 DividendsFinal dividends on shares are recorded on the date of approval by

the shareholders of the Group.

2.26 Royalty The Group pays / accrues for royalty in accordance with the

relevant licence agreements.

2.27 Business combinations Acquisitions of subsidiaries and businesses are accounted

for using the acquisition method. Acquisition related costs

are recognized in profit or loss as incurred. The acquiree’s

identifiable assets, liabilities and contingent liabilities that meet

the conditions for recognition are recognized at their fair value

at the acquisition date, except certain assets and liabilities that

are required to be measured as per the applicable standard.

Purchase consideration in excess of the Company’s interest

in the acquiree’s net fair value of identifiable assets, liabilities

and contingent liabilities is recognized as goodwill. Excess of

the Company’s interest in the net fair value of the acquiree’s

identifiable assets, liabilities and contingent liabilities over the

purchase consideration is recognized, after reassessment of fair

value of net assets acquired, in the Capital Reserve.

Common controlA business combination involving entities or businesses

under common control is a business combination in which

all of the combining entities or businesses are ultimately

controlled by the same party or parties both before and after

the business combination and the control is not transitory.

Business combinations involving entities under common control

are accounted for using the pooling of interests method. The

net assets of the transferor entity or business are accounted

at their carrying amounts on the date of the acquisition subject

to necessary adjustments required to harmonise accounting

policies. Any excess or shortfall of the consideration paid over

the share capital of transferor entity or business is recognised as

capital reserve under equity.

2.28 Rounding of amounts All amounts disclosed in the financial statements and the

accompanying notes have been rounded off to the nearest million

as per the requirement of Schedule III of the Companies Act 2013,

unless otherwise stated.

3. Applicability of New and Revised Ind AS

3.1 Ministry of Corporate affairs has notified Ind AS 115 ‘Revenue

from Contracts with customers’, which is effective from April 1,

2018. The new standard outlines a single comprehensive control-

based model for revenue recognition and supersedes current

revenue recognition guidance based on risks on rewards. The

Group is evaluating the requirements of Ind AS 115 and its effect

of the financial statements.

3.2 Appendix B to Ind AS 21, Foreign currency transactions and

advance consideration: On March 28, 2018, Ministry of Corporate

Affairs ("MCA") has notified the Companies (Indian Accounting

Standards) Amendment Rules, 2018 containing Appendix B to Ind

AS 21, Foreign currency transactions and advance consideration

which clarifies the date of the transaction for the purpose of

determining the exchange rate to use on initial recognition

of the related asset, expense or income, when an entity has

received or paid advance consideration in a foreign currency. The

amendment will come into force from April 1, 2018. The Group

is evaluating the requirements of Ind AS 21 and its effect of the


3.3 Amendments to Ind AS 12 - Recognition of Deferred Tax Assets for Unrealised LossesThe amendments clarify that an entity needs to consider whether

tax law restricts the sources of taxable profits against which it may

make deductions on the reversal of that deductible temporary

difference. Furthermore, the amendments provide guidance

on how an entity should determine future taxable profits and

explain the circumstances in which taxable profit may include

the recovery of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively.

However, on initial application of the amendments, the change

in the opening equity of the earliest comparative period may be

recognised in opening retained earnings (or in another component

of equity, as appropriate), without allocating the change

between opening retained earnings and other components

of equity. Entities applying this relief must disclose that fact.

These amendments are effective for annual periods beginning

on or after 1 April 2018. These amendments are not expected to

have material effect on Company’s financial statements.




210

4. Property, Plant and Equipment and Capital Work-In-Progress

As at 31.03.2018

As at

31.03.2017

Carrying amount of Freehold Land 31,574 19,079

Leasehold Land ^ 546 549

Buildings 16,959 16,672

Plant & Machinery 78,472 90,425

Electronic Data Processing (EDP) Equipment 573 613

Furniture, Fixtures and Office Appliances 1,392 981

Vehicles 1,255 1,058

130,771 129,377 Capital work-in-progress 21,321 12,523

152,092 141,900

^ In the nature of perpetual lease

Freehold Land

Leasehold Land

Buildings Plant & Machinery

EDP Equipment

Furniture, Fixtures

and Office Appliances

Vehicles Total

Gross Carrying amount

Balance at April 01, 2016 18,492 526 15,131 111,634 830 1,090 1,041 148,744

Addition 587 25 3,261 28,213 521 308 525 33,440

Disposal / adjustments* - - (43) (965) (1) 2 (263) (1,270)

Balance at March 31, 2017 19,079 551 18,349 138,882 1,350 1,400 1,303 180,914

Addition 12,495 - 1,491 12,953 382 665 692 28,678

Disposal / adjustments* - - (7) (1,014) (9) (2) (377) (1,409)

Balance at March 31, 2018 31,574 551 19,833 150,821 1,723 2,063 1,618 208,183

Accumulated depreciation and impairment

Balance at April 01, 2016 - - 718 25,529 344 195 131 26,917 Depreciation expenses - 2 960 23,348 393 226 165 25,094 Disposal / adjustments* - - (1) (420) - (2) (51) (474)Balance at March 31, 2017 - 2 1,677 48,457 737 419 245 51,537 Depreciation expenses - 3 1,198 24,391 425 261 197 26,475 Disposal / adjustments* - - (1) (499) (12) (9) (79) (600)Balance at March 31, 2018 - 5 2,874 72,349 1,150 671 363 77,412

Carrying amountBalance at April 01, 2016 18,492 526 14,413 86,105 486 895 910 121,827

Addition 587 25 3,261 28,213 521 308 525 33,440

Disposal / adjustments* - - (42) (545) (1) 4 (212) (796)

Depreciation expenses - (2) (960) (23,348) (393) (226) (165) (25,094)

Balance at March 31, 2017 19,079 549 16,672 90,425 613 981 1,058 129,377

Addition 12,495 - 1,491 12,953 382 665 692 28,678

Disposal / adjustments* - - (6) (515) 3 7 (298) (809)

Depreciation expenses - (3) (1,198) (24,391) (425) (261) (197) (26,475)

Balance at March 31, 2018 31,574 546 16,959 78,472 573 1,392 1,255 130,771



211

4.1 Notes on property, plant and equipment 1 Immovable properties having carrying value of ` 27 million (as at 31.03.17 ` 27 million) are not yet registered in the name of the

Company.

2 Plant and Machinery includes a Gas Turbine jointly owned by the Company with its group companies and other companies (pro-

rata cost amounting to ` 374 million, carrying amount as at 31st March 2018 Nil (as at 31.03.17 Nil).

3 A part of freehold land of the Company situated at Gurugram, Manesar and Gujarat has been made available to its group companies

/ fellow subsidiary for their business purpose.

4 Based on technical evaluation and market considerations, the Company has, with effect from 1st April 2016, revised the estimated

useful life of dies & jigs, included in plant and machinery, from 4 years to 5 years. This had resulted in depreciation expense for the

financial year 2016-17 being lower by ` 2,411 million.

* Adjustment includes the intra-head re-grouping of amounts.

5. Intangible Assets

As at 31.03.2018

As at

31.03.2017

Carrying amount ofLumpsum royalty and engineering support fee 3,117 3,730

3,117 3,730

Lumpsum royalty and engineering support fee

Gross Carrying amountBalance at April 01, 2016 4,682

Addition 1,206


Adjustment (52)


Accumulated amortisation and impairmentBalance at April 01, 2016 1,213

Amortisation expenses 945

Balance at March 31, 2017 2,158 Amortisation expenses 1,123

Balance at March 31, 2018 3,281 Carrying amountBalance at April 01, 2016 3,469

Addition 1,206

Amortisation expenses (945)


Adjustment (52)

Amortisation expenses (1,123)


5.1 Notes on intangible assets 1 Based on technical evaluation and market considerations, the Company has, with effect from 1st April 2016, revised the estimated

useful life of intangible asset from 4 years to 5 years. This had resulted in amortisation expense for the financial year 2016-17 being

lower by ` 307 million.




212

6. Investments

As at 31.03.2018

As at

31.03.2017

Non-currentInvestment in equity instruments

- Associate companies 8,176 6,810

- Joint venture companies 1,464 1,197

- Others 10,771 7,301

Investment in preference shares - -

Investment in debt mutual funds 328,647 254,410

349,058 269,718 CurrentInvestment in debt mutual funds 12,173 21,788

12,173 21,788 Aggregate value of unquoted investments 349,674 283,491

Aggregate value of quoted investments 11,607 8,065

Market value of quoted investments 13,710 10,274

Aggregate value of diminution other than temporary in value of investments 50 50

6.1 Investment in associates Break-up of investment in associates (carrying amount determined using the equity method of accounting)

As at 31.03.2018 As at 31.03.2017


Quoted investment (fully paid up)Bharat Seats Limited (Face value of ` 2 each) 4,650,000 129 4,650,000 92

Jay Bharat Maruti Limited (Face value of ` 5 each) 6,340,000 1,055 6,340,000 892

Machino Plastics Limited (Face value of ` 10 each) 941,700 89 941,700 97

Total aggregate quoted investment (A) 1,273 1,081 Aggregate market value of quoted investment 3,376 3,290

Unquoted investment (fully paid up)Caparo Maruti Limited (Face value of ` 10 each) 2,500,000 373 2,500,000 357

Hanon Climate Systems India Private Limited (Face value of ` 100 each) 518,700 771 518,700 751

Krishna Maruti Limited (Face value of ` 10 each) 670,000 630 670,000 491

SKH Metals Limited (Face value of ` 10 each) 2,645,000 504 2,645,000 463

Nippon Thermostat (India) Limited (Face value of ` 10 each) 125,000 4 125,000 4

Mark Exhaust Systems Limited (Face value of ` 10 each) 4,437,465 283 4,437,465 256

Bellsonica Auto Components India Private Limited (Face value of ` 100 each) 3,540,000 354 3,540,000 289

FMI Automotive Components Private Limited (Face value of ` 10 each) 44,100,000 576 44,100,000 489

Manesar Steel Processing India Private Limited (Face value of ` 10 each) 6,840,000 45 6,840,000 42

Maruti Insurance Broking Private Limited (Face value of ` 10 each) 231,275 3,363 231,275 2,587

Total aggregate unquoted investment (B) 6,903 5,729 Total investments carrying value (A) + (B) 8,176 6,810

Investment in associates are accounted for using the equity method in these consolidated financial statements.

Each of the thirteen associates is not individually material to the Group considering the contribution of these associates to the

consolidated net asset of the Group.



213

Financial information of associates that are not individually material


Year ended

31.03.2017

The Group's share of profit or loss 1,366 1,493

The Group's share of total comprehensive income 1,366 1,493

As at 31.03.2018

As at

31.03.2017

Aggregate carrying amount of the Group's interest in these associates 8,176 6,810

6.2 Investment in joint ventures Break-up of investment in joint ventures (carrying amount determined using the equity method of accounting)

As at 31.03.2018 As at 31.03.2017


Unquoted investment (fully paid up)Plastic Omnium Auto Inergy Manufacturing India Private Limited (Face value of ` 10 each) 6,656,000 210 6,656,000 180

Magneti Marelli Powertrain India Limited (Face value of ` 10 each) 8,550,000 1,254 8,550,000 1,017

Total aggregate unquoted investment 1,464 1,197

Investment in joint ventures are accounted for using the equity method in these consolidated financial statements.

Each of the joint ventures is not individually material to the Group considering the contribution of these joint ventures to the consolidated

net asset of the Group.

Financial information in respect of joint ventures that are not individually material


Year ended

31.03.2017

The Group's share of profit or loss 267 235

The Group's share of total comprehensive income 267 235

As at 31.03.2018

As at

31.03.2017

Aggregate carrying amount of the Group's interest in these associates 1,464 1,197




214

6.3 Other equity instruments Investment in equity instruments at fair value through other comprehensive income

As at 31.03.2018 As at 31.03.2017


Quoted investment (fully paid up)Asahi India Glass Limited (Face value of ` 1 each) 26,995,200 8,975 26,995,200 5,857

Sona Koyo Steering Systems Limited (Face value of ` 1 each) 13,800,000 1,359 13,800,000 1,127

Total aggregate quoted investment (i) 10,334 6,984

As at 31.03.2018 As at 31.03.2017


Unquoted investment (fully paid up)Denso India Private Limited (Face value of ` 10 each) 2,862,758 436 2,862,758 316

Total aggregate unquoted investment (ii) 436 316 Investment in equity shares of Section 8 CompanyInternational Automobile Centre of Excellence (Face value of ` 10 each) 100,000 1 100,000 1

Investment in equity shares of Section 8 Company (iii) 1 1 Investment in other equity instruments [i+ii+iii] 10,771 7,301

6.4 Investment in preference shares

As at 31.03.2018 As at 31.03.2017


Western Paques (India) Limited (Face value of ` 100 each) 500,000 50 500,000 50

Less: Provision for diminution in value (50) (50)

- -

6.5 Investment in mutual funds

As at 31.03.2018

As at

31.03.2017

Non current investment in debt mutual funds 328,647 254,410

Current investment in debts mutual funds 12,173 21,788



215



31.03.2018 31.03.2017 31.03.2018 31.03.2017

Current Non Current

Current Non

Current

Units of Debt Mutual Funds: Aditya Birla Sun Life Dynamic Bond Fund (Earlier name Birla Sunlife Dynamic

Bond Fund)

10 137,038,104 234,032,609 - 4,228 - 6,955

Aditya Birla Sun Life Fixed Term Plan - Series PA (1177) 10 45,000,000 - - 458 - -

Aditya Birla Sun Life Fixed Term Plan - Series PC (1169) 10 75,000,000 - - 761 - -

Aditya Birla Sun Life Fixed Term Plan - Series PE (1159) 10 30,000,000 - - 303 - -

Aditya Birla Sun Life Fixed Term Plan - Series PJ (1135) 10 25,000,000 - - 252 - -

Aditya Birla Sun Life Fixed Term Plan - Series PK (1132) 10 50,000,000 - - 503 - -

Aditya Birla Sun Life Fixed Term Plan - Series PO (1140) 10 45,000,000 - - 452 - -

Aditya Birla Sun Life Income Plus (Earlier name Birla Sunlife Income Plus) 10 35,314,419 35,314,419 - 2,785 - 2,668

Aditya Birla Sun Life Savings Fund (Earlier name Birla Sunlife Saving Fund) 100 6,332,053 6,332,053 - 2,178 - 2,027

Aditya Birla Sun Life Short Term Fund (Earlier name Birla Sunlife Short Term Fund) 10 530,610,429 342,941,989 - 35,456 - 21,449

Aditya Birla Sun Life Treasury Optimizer Plan (Earlier name Birla Sunlife Treasury

Optimizer Plan)

100 1,141,130 1,141,130 - 256 - 240

Aditya Birla Sunlife Fixed Term Plan Series LG 1157 Day (Earlier Birla Sunlife

Fixed Term Plan Series LG 367 Days)

10 - 60,000,000 - - 766 -

Aditya Birla Sunlife Fixed Term Plan Series LV (1099 Days) (Earlier name Birla

Sunlife Fixed Term Plan Series LV 1099 Days)

10 - 20,000,000 - - 251 -

Aditya Birla Sunlife Fixed Term Plan Series MA (1099 Days) (Earlier name Birla

Sunlife Fixed Term Plan Series MA 1099 Days)

10 - 20,000,000 - - 248 -

Aditya Birla Sunlife Fixed Term Plan Series MD (1099 Days) (Earlier name Birla

Sunlife Fixed Term Plan Series MD 1099 Days)

10 - 50,000,000 - - 613 -

Aditya Birla Sunlife Fixed Term Plan Series MX (1128 Days) (Earlier name Birla

Sunlife Fixed Term Plan Series MX 1128 Days)

10 40,000,000 40,000,000 490 - - 457

Aditya Birla Sunlife Fixed Term Plan Series MY (1107 Days) (Earlier name Birla

Sunlife Fixed Term Plan Series MY 1107 Days)

10 50,000,000 50,000,000 606 - - 565

Aditya Birla Sunlife Govt. Securities Long Term (Earlier name Birla Sunlife Govt.

Securities Long Term)

10 - 11,596,220 - - - 579

Axis Banking & PSU Debt Fund

[Earlier name Axis Banking Debt Fund Direct Plan]

1,000 427,323 683,014 - 692 - 1,030

Axis Short Term Fund 10 513,976,615 333,002,109 - 10,095 - 6,128

DHFL Pramerica Banking & PSU Debt Fund

(Earlier name DWS Banking & PSU Debt Fund)

10 68,382,816 68,382,816 - 1,050 - 984



10 - 25,000,000 - - 306 -



10 - 30,000,000 - - 359 -



10 50,000,000 50,000,000 638 - - 596



10 30,000,000 30,000,000 377 - - 352

DHFL Pramerica Gilt Fund

(Earlier name DWS Gilt Fund)

10 - 38,515,757 - - - 705

DHFL Pramerica Short Term Floating Rate Fund

(Earlier name DWS Treasury Fund Investment Plan)

10 45,187,833 45,187,833 - 878 - 821

DHFL Pramerica Ultra Short Term Fund

(Earlier name DWS Ultra Short Term Fund)

10 - 55,129,962 - - - 653

DSP Black Rock Short Term Fund 10 219,921,666 122,966,814 - 6,726 - 3,521

DSP Black Rock Strategic Bond Fund 1,000 1,044,115 1,705,807 - 2,149 - 3,395




DSP BlackRock Low Duration Fund (Earlier name DSP Black Rock Ultra Short

Term Fund)

10 168,710,431 168,710,431 - 2,151 - 2,009

Edelweiss Bond Fund

[Earlier name JP Morgan Active Income Bond Fund]

10 - 63,048,829 - - - 1,141

Edelweiss Liquid Fund

[Earlier name JP Morgan India Liquid Fund]

10 - 52,935,460 - - - 644

Frankin India Treasury Management Account -Super Inst Plan 1,000 1,796 - - - 4



HDFC FMP 1111 Days November 2015 (1) Series 34 10 40,000,000 40,000,000 480 - - 449

HDFC FMP 1114D March 2016 (1) Series 35 10 250,000,000 250,000,000 - 2,944 - 2,750

HDFC FMP 1167 Days January 2016 (1) 10 180,000,000 180,000,000 - 2,148 - 2,007

HDFC FMP 369 Days February 2014 (2) Series 29 10 - 30,000,000 - - 390 -




216



31.03.2018 31.03.2017 31.03.2018 31.03.2017

Current Non Current

Current Non

Current

HDFC FMP 370 Days March 2014 (1) Series 29 10 - 25,000,000 - - 324 -

HDFC Floating Rate Income Fund Long Term Plan 10 - 65,075,825 - - - 1,872

HDFC Floating Rate Income Fund Short Term Plan Growth 10 92,433,479 92,433,479 - 2,808 - 2,621

HDFC FMP 1143D March 2018 (1) (39) 10 90,000,000 - 906 - -

HDFC FMP 1145D March 2018 (1) (39) 10 35,000,000 - 351 - -

HDFC FMP 1147D March 2018 (1) (39) 10 70,000,000 - 702 - -

HDFC FMP 1158D February 2018 (1) (39) 10 100,000,000 - 1,013 - -

HDFC High Interest Fund - Dynamic Plan 10 27,381,267 27,381,267 - 1,680 - 1,604

HDFC Income Fund 10 35,595,296 73,743,649 - 1,423 - 2,853

HDFC Medium Term Opportunity Fund 10 1,067,275,812 650,273,484 - 20,713 - 11,820

HDFC Short Term Opportunities Fund 10 811,217,527 726,177,638 - 15,675 - 13,144

HSBC Income Fund Short Term Plan 10 51,140,380 51,140,380 - 1,521 - 1,428

ICICI Prudential Banking and PSU Debt Fund 10 141,291,460 141,291,460 - 2,857 - 2,675

ICICI Prudential FMP Series 74 367 Days Plan D 10 - 60,000,000 - - 768 -

ICICI Prudential FMP Series 74 369 Days Plan F 10 - 40,000,000 - - 511 -

ICICI Prudential FMP Series 75- 1100 Days Plan H 10 - 15,000,000 - - 188 -

ICICI Prudential FMP Series 75- 1100 Days Plan O 10 - 15,000,000 - - 186 -

ICICI Prudential FMP Series 75 1100 Days Plan R 10 - 50,000,000 - - 614 -

ICICI Prudential FMP Series 75 1103 Days Plan P 10 - 35,000,000 - - 429 -

ICICI Prudential FMP Series 76 1100 Days Plan G 10 - 50,000,000 - - 599 -

ICICI Prudential FMP Series 76 1100 Days Plan T 10 - 35,000,000 - - 417 -

ICICI Prudential FMP Series 76 1103 Days Plan F 10 25,000,000 - - 300 -

ICICI Prudential FMP Series 76 1155 Days Plan K 10 30,000,000 30,000,000 386 - - 361

ICICI Prudential Flexible Income 100 52,869,340 11,858,050 - 17,716 - 3,707

ICICI Prudential FMP - Series 82 - 1135 Days Plan U 10 60,000,000 - - 602 - -

ICICI Prudential FMP - Series 82 - 1185 Days Plan I 10 125,000,000 - - 1,266 - -

ICICI Prudential FMP - Series 82 - 1185 Days Plan M 10 50,000,000 - - 505 - -

ICICI Prudential FMP - Series 82 - 1185 Days Plan N 10 30,000,000 - - 302 - -

ICICI Prudential FMP - Series 82 - 1199 Days Plan L 10 70,000,000 - - 709 - -

ICICI Prudential FMP - Series 82 - 1219 Days Plan D 10 25,000,000 - - 254 - -

ICICI Prudential Income Fund 10 18,227,388 48,662,288 - 1,055 - 2,653

ICICI Prudential Income Opportunities Fund 10 56,980,588 103,095,285 - 1,411 - 2,405

ICICI Prudential Interval Fund Series VI Annual Interval Plan C 10 - 10,760,176 - - 151 -

ICICI Prudential Short Term Plan 10 168,014,946 - - 6,301 - -

ICICI Prudential Ultra Short Term Direct Plan 10 859,569,584 713,250,632 - 15,724 - 12,205

IDFC Banking Debt Fund 10 - 91,140,256 - - - 1,275

IDFC Corporate Bond Fund 10 1,632,237,300 681,053,726 - 19,538 - 7,639

IDFC Dynamic Bond Fund 10 131,598,736 200,427,616 - 2,844 - 4,199

IDFC Fixed Term Plan - Series 140 10 50,000,000 - - 505 - -

IDFC Government Securities Fund Investment Plan 10 20,690,838 20,690,838 - 434 - 423

IDFC Money Manager Fund Investment Plan 10 71,175,883 134,077,826 - 1,933 - 3,452

IDFC Super Saver Income Fund Medium Term Plan 10 37,686,075 37,686,075 - 1,136 - 1,076

IDFC Super Saver Income Fund Short Term Plan 10 134,579,249 134,579,249 - 4,920 - 4,619



10 25,000,000 25,000,000 352 - 329 -



10 - 25,000,000 - - 319 -

Invesco India FMP Sr 25 Plan A (1098 Days)

[Earlier name Religare Invesco FMP Series 25 Plan A (1098 Days)]

10 - 25,000,000 - - 302 -

Invesco India FMP Sr 25 Plan F (1126Days)

[Earlier name Religare Invesco FMP Series 25 Plan F (1126 Days)]

10 30,000,000 30,000,000 382 - - 357

Invesco India FMP Sr 26 Plan C (1098 Days)

[Earlier name Religare Invesco FMP Series 26 (1098 Days)]

10 30,000,000 30,000,000 373 - - 348

Invesco India Short Term Fund

[Earlier name Religare Short Term Fund]

1,000 1,039,466 1,622,460 - 2,476 - 3,635

Invesco India Ultra Short Term Fund

[Earlier name Religare Invesco Ultra Short Term Fund]

1,000 - 1,254,342 - - - 1,593

JM Money Manager Fund Super Plus Plan Growth Option 10 37,591,347 37,591,347 - 936 - 876

Kotak Banking and PSU Debt Fund 10 48,998,089 - - 1,950 - -

Kotak Bond Fund [ Earlier name Kotak Bond Scheme Plan A] 10 42,480,285 84,088,525 - 2,103 - 4,016

Kotak Bond Short Term 10 464,019,598 268,906,154 - 15,627 - 8,508

Kotak FMP Series 142 10 - 35,000,000 - - 453 -

Kotak FMP Series 150 10 - 25,000,000 - - 328 -



217



31.03.2018 31.03.2017 31.03.2018 31.03.2017

Current Non Current

Current Non

Current

Kotak FMP Series 151 10 - 25,000,000 - - 319 -

Kotak FMP Series 156 10 - 18,000,000 - - 229 -

Kotak FMP Series 158 10 - 25,000,000 - - 318 -

Kotak FMP Series 159 10 - 32,700,000 - - 416 -

Kotak FMP Series 171 10 - 20,000,000 - - 239 -

Kotak FMP Series 176 10 25,000,000 25,000,000 312 - - 290

Kotak FMP Series 178 10 45,000,000 45,000,000 557 - - 517




Kotak Treasury Advantage Fund 10 144,239,928 144,239,928 - 4,072 - 3,802

L & T Short Term Opportunities Fund 10 180,948,268 180,948,268 - 3,077 - 2,884

L& T Ultra Short Term Fund 10 - 55,748,239 - - - 818

Reliance Annual Interval Fund 10 250,434 - - - 78

Reliance Banking & PSU Debt Fund Direct Plan 10 275,291,993 275,291,993 - 3,471 - 3,257

Reliance Dynamic Bond Fund 10 132,568,584 132,568,584 - 3,181 - 3,049


Reliance Fixed Horizon Fund XXIX Series 16 10 50,000,000 50,000,000 - 603 - 563



Reliance Fixed Horizon Fund -XXVI- Series 13 10 166,984 - - 586 -

Reliance Fixed Horizon Fund XXVI Series 17 10 - 34,000,000 - - 435 -

Reliance Fixed Horizon Fund XXVII Series 11 10 - 45,000,000 - - 552 -

Reliance Fixed Horizon Fund XXVIII Series 10 10 45,000,000 45,000,000 578 - - 539

Reliance Fixed Horizon Fund XXX Series 4 10 85,000,000 85,000,000 - 1,015 - 947

Reliance Floating Rate Fund Short Term 10 417,460,633 307,885,187 - 11,734 - 8,108

Reliance Income Fund 10 9,712,908 9,712,908 - 558 - 536

Reliance Money Manager Fund 1,000 517,148 517,148 - 1,261 - 1,177

Reliance Short Term Fund 10 712,836,928 712,835,497 - 24,012 - 22,526






SBI Debt Fund Series B-26 (1100 Days ) 10 30,000,000 30,000,000 363 - - 339



SBI Dynamic Bond Fund 10 160,943,391 160,943,391 - 3,543 - 3,405

SBI Short Term Debt Fund 10 150,936,462 150,936,462 - 3,094 - 2,903

SBI Ultra Short Term Debt Fund 1,000 1,529,671 1,529,671 - 3,445 - 3,224

Sundaram Fixed Term Plan GE Direct Growth 10 250,584 - - 423 -

Sundaram Fixed Term Plan GY 10 65,000,000 65,000,000 809 - - 755

Sundaram Fixed Term Plan HB 10 50,000,000 50,000,000 600 - - 561

Sundaram Money Fund 10 - 183,330,755 - - - 2,250

Sundaram Select Debt ST Asset Plan 10 29,803,693 - - 929 - -

Sundaram Ultra Short Term Fund 10 - 26,443,089 - - - 343

Sundaran Banking and PSU Debt Fund [Earlier name Sundaram Flexible Fund

Short Term Plan]

10 29,383,976 65,468,998 - 804 - 1,684

Tata Short Term Bond Fund 10 250,995,072 250,995,072 - 8,417 - 7,902

Tata Ultra Short Term Fund [Earlier name Tata Floater Fund] 1,000 1,093,981 1,093,981 - 2,907 - 2,715

UTI Bond Fund 10 33,079,932 53,181,546 - 1,806 - 2,765

UTI Fixed Term income fund series VIII -VII Direct Growth plan 10 9,959,130 - - 127 -

UTI Fixed Term Income Fund Series XIX IX 369 Days 10 - 54,995,921 - - 691 -

UTI Fixed Term Income Fund Series XIX VI 366 Days 10 - 25,000,000 - - 314 -

UTI Fixed Term Income Fund Series XIX XI 366 Days 10 - 33,039,648 - - 414 -

UTI Fixed Term income Fund Series XIX-III -Direct Growth 10 28,000,000 - - 353 -

UTI Fixed Term Income Fund Series XVII-XIII (369) Days 10 - 32,000,000 - - 417 -

UTI Fixed Term Income Fund Series XX VIII (1105 Days) 10 - 50,000,000 - - 613 -

UTI Fixed Term Income Fund Series XX X (1105 Days) 10 - 30,000,000 - - 367 -

UTI Fixed Term Income Fund Series XXI XI (1112 Days ) 10 50,000,000 50,000,000 639 - - 597

UTI Fixed Term Income Fund Series XXII XIV (1100 Days) 10 45,000,000 45,000,000 556 - - 518

UTI Fixed Term Income Fund Series XXIII- VII (1098) Days 10 35,000,000 35,000,000 423 - - 395

UTI Fixed Term Income Fund Series XXIII-III (1098 Days) 10 40,000,000 40,000,000 491 - - 458




218



31.03.2018 31.03.2017 31.03.2018 31.03.2017

Current Non Current

Current Non

Current

UTI Fixed Term Income Fund- Series XXVIII - Plan IX - (1168 Days) 10 30,000,000 - - 304 - -

UTI Fixed Term Income Fund- Series XXVIII - Plan VI - (1190 Days) 10 25,000,000 - - 254 - -

UTI Fixed Term Income Fund- Series XXVIII - Plan XII - (1154 Days) 10 30,000,000 - - 302 - -

UTI Floating Rate Fund 1,000 705,166 705,166 - 2,053 - 1,917

UTI Short Term Income Fund 10 543,283,611 - - 11,754 - -

UTI Treasury Advantage Fund 1,000 2,889,912 2,889,912 - 6,975 - 6,518

12,173 328,647 21,788 254,410

7. Loans (unsecured and considered good, unless otherwise stated)

As at 31.03.2018

As at

31.03.2017

Non Current Employee related loans and advances 1 2

Inter corporate deposits- unsecured considered doubtful 125 125

Provision for Intercorporate deposits (125) (125)

Others 1 1

2 3 CurrentEmployee related loans and advances 30 25

30 25

8. Trade Receivables

As at 31.03.2018

As at

31.03.2017

Unsecured - considered good 14,654 12,026


Provision for doubtful debts (26) (6)

14,654 12,026



219

8.1 The credit risk to the Company is limited since most of the sales are made against advances or letter of credit/bank guarantees

from banks of national standing. The credit period generally allowed on domestic sales varies from 30 to 45 days (excluding transit

period). The credit period on export sales varies on case to case basis, based on market conditions.

As at 31.03.2018

As at

31.03.2017

Age of receivables

Within the credit period 13,998 11,688



More than 180 days past due 68 31

14,654 12,026

9. Other Financial Assets (unsecured and considered good, unless otherwise stated)

As at 31.03.2018

As at

31.03.2017

Non Current Financial assets carried at amortised cost Security deposits 200 113

Others 128 128

328 241 CurrentFinancial assets carried at amortised cost Interest accrued - secured 1 1

- unsecured 21 20

Recoverable from related parties 2,464 624

Others - considered good 251 143

- considered doubtful - 4

Less: provision for doubtful assets - (4)

Financial assets carried at fair value Foreign currency and commodity forward contract not qualifying or not designated in hedge accounting

relationships

109 163

2,846 951




220

10. Inventories

As at 31.03.2018

As at

31.03.2017

Inventories (lower of cost and net realisable value) Raw materials 14,368 13,650

Work-in-progress 1,772 1,546


Vehicle 9,700 12,330


Traded goods



Loose Tools 1,053 859

31,602 32,637 Inventory includes in transit inventory of: Raw materials 3,701 4,893

Stock in trade 53 64

The cost of inventories recognised as an expense during the year in respect of continuing operations was ` 614,876 million (previous

year ` 525,920 million).

The cost of inventories recognised as an expense includes ` 152 million (previous year ` 29 million) in respect of write-downs of

inventory to net realisable value.

The mode of valuation of inventories has been stated in note 2.15.

11. Cash and Bank Balances

As at 31.03.2018

As at

31.03.2017

Cash and cash equivalents:Balances with Banks 189 134

Cheques, drafts in hand 37 6

Deposits (less than 3 months original maturity period) 500 85

Cash in hand 2 2

728 227 Other Bank balances:Unclaimed dividend accounts 12 8

12 8 740 235

Cash and cash equivalents as per cash flow statement 728 227



221

12. Other Assets (unsecured and considered good, unless otherwise stated)

As at 31.03.2018

As at

31.03.2017

Non-current Capital advances - considered good* 6,573 4,043

Prepaid expenses and leases 5,481 3,929

Amount paid under protest / dispute 6,413 7,950

Claims - unsecured considered good 96 79

- unsecured considered doubtful 27 27

Less : provision for unsecured claims (27) (27)

Others 24 32

Current 18,587 16,033 Balance with customs, port trust and other Government authorities 2,363 9,917

Claims 1,084 1,142

Prepaid expenses and leases 578 433

Advance to related parties 5,815 980

Others - considered good 3,300 2,936


Less: provisions for doubtful balances (104) (92)

13,140 15,408

* Includes capital advance given to related parties ` 1021 million (31.03.17: ` 622 million).

13. Equity Share Capital

As at 31.03.2018

As at

31.03.2017

Authorised share capital:3,751,000,000 equity shares of ` 5 each (as at 31.03.17: 3,751,000,000 equity shares of ` 5 each) 18,755 18,755

Issued, subscribed and fully paid up share capital comprises:302,080,060 equity shares of ` 5 each (as at 31.03.17: 302,080,060 equity shares of ` 5 each) 1,510 1,510

1,510 1,510

13.1 Rights, preference and restriction attached to shares The Company has one class of equity shares having a par value of ` 5 per share. Each shareholder is eligible for one vote per share

held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General

Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining

assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

13.2 Reconciliation of number of shares

As at 31.03.2018 As at 31.03.2017


Balance as at the beginning of year 302,080,060 1,510 302,080,060 1,510

Balance as at the end of year 302,080,060 1,510 302,080,060 1,510




222

13.3 Details of shares held by the holding company

As at 31.03.2018 As at 31.03.2017


Suzuki Motor Corporation, Japan 169,788,440 849 169,788,440 849

169,788,440 849 169,788,440 849

13.4 Details of shares held by each shareholder holding more than 5% shares

As at 31.03.2018 As at 31.03.2017

Number of shares % holding Number of shares % holding

Suzuki Motor Corporation (the holding company) 169,788,440 56.21 169,788,440 56.21

Life Insurance Corporation of India 15,589,504 5.16 16,007,292 5.30

13.5 Shares allotted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding 31st March 2018) 13,170,000 equity shares of ` 5 each have been allotted as fully paid up during Financial Year 2012-13 to Suzuki Motor Corporation

pursuant to the Company's scheme of amalgamation with erstwhile Suzuki Powertrain India Limited.

14. Other Equity

As at 31.03.2018

As at

31.03.2017

Capital reserve 2 2

General reserve 29,309 29,309

Securities premium reserve 4,241 4,241

Reserve created on amalgamation 9,153 9,153

Retained earnings 371,027 319,627

Reserve for equity instruments through other comprehensive income 10,353 6,909

Cash flow hedging reserve (1) -

424,084 369,241

14.1 Capital reserves


Year ended

31.03.2017

Balance at the beginning of year 2 2

Movement - -

Balance at the end of year 2 2

14.2 General reserve


Year ended

31.03.2017


Amount transferred to general reserves - -




223

The general reserve is created from time to time on transfer of profits from retained earnings. General reserve is created by transfer

from one component of equity to another and is not an item of other comprehensive income, items included in general reserve will not

be reclassified subsequently to profit and loss.

14.3 Securities premium reserve


Year ended

31.03.2017


Movement - -


14.4 Reserve created on amalgamation


Year ended

31.03.2017


Movement - -


This reserve is created on the basis of the scheme of amalgamation of erstwhile Suzuki Powertrain India Limited (SPIL) with the Company

as approved by the High Court of Delhi in the year ended 31st March 2013.

14.5 Retained earnings


Year ended

31.03.2017


Profit attributable to owners of the Company 78,800 75,099

Other comprehensive income arising from remeasurement of defined benefit obligation attributable to

owners of the Company *

(132) (100)


Tax on dividend (4,612) (2,152)


During the year, a dividend of ` 75 per share, total dividend ` 22,656 million (previous year : ` 35 per share, total dividend ` 10,573

million) was paid to equity shareholders.

The Board of Directors recommended a final dividend of ` 80 per share (nominal value of ` 5 per share) for the financial year 2017-

18. This dividend is subject to approval by the shareholders at the Annual General Meeting and has not been accounted as liability in

these financial statements. The total expected amount of cash outflow is ` 29,134 million including dividend distribution tax of ` 4,968

million.

* net of income tax of ` 65 million (previous year ` 58 million)




224

14.6 Reserve for equity instruments through other comprehensive income


Year ended

31.03.2017


Net fair value gain on investment in equity instruments at FVTOCI 3,470 2,361

Income tax on net fair value gain on investments in equity instruments at FVTOCI (26) 3


This reserves represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value

through other comprehensive income, net of amount reclassified to retained earnings when those assets have been disposed of.

14.7 Cash flow hedging reserve


Year ended

31.03.2017

Balance at the beginning of year - 47

Recognised / (released) during the year (2) (72)

Income tax related to above 1 25

Balance at the end of year (1) -

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of

designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on changes in fair

value of the designated portion of the hedging instruments that are recognised and accumulated under the heading of cash flow

hedging reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a basis

adjustment to the non-financial hedging item.

15. Non-Controlling Interests


Year ended

31.03.2017

Balance at beginning of year 154 144

Share of total comprehensive income of the year 7 10

Balance at the end of the year 161 154

Details of non-wholly owned subsidiary

Name of subsidiary Place of

incorporation

and principal

place of

business

Proportion of ownership interests

and voting rights held by non-

controlling interest

Profit (loss) allocated to non-

controlling interest

Accumulated non-controlling

interest

31.03.2018 31.03.2017 31.03.2018 31.03.2017 31.03.2018 31.03.2017

J J Impex (Delhi)

Private Limited

India 49.13% 49.13% 7 10 161 154



225

Summarised financial information of J J Impex (Delhi) Private Limited (before intragroup eliminations)

As at 31.03.2018

As at

31.03.2017

Non current assets 367 192

Current assets 172 224

Non current liabilities (111) (13)

Current liabilities (100) (88)

Equity attributable to owners of the Company 167 161



Year ended

31.03.2017

Revenue 868 890

Expenses 854 867

Profit (loss) for the year 14 23

Other comprehensive income (1) (2)

Total comprehensive income 13 21

Total comprehensive income attributable to owners of the Company 7 12

Profit (loss) attributable to non controlling interest 7 11

Profit (loss) for the year 14 23 Other comprehensive income attributable to owners of the Company (1) (1)

Other comprehensive income attributable to non controlling interest - (1)

Other comprehensive income for the year (1) (2)Total comprehensive income attributable to owners of the Company 6 11

Total comprehensive income attributable to non controlling interest 7 10

Total comprehensive income for the year 13 21

16. Borrowings

As at 31.03.2018

As at

31.03.2017

Non-current Unsecured Term loans from banks 100 -

100 - Current Unsecured Loans repayable on demand from banks

- Cash credit and overdraft 1,108 4,836

1,108 4,836




226

16.1 Summary of borrowing arrangements 1. Loans from banks include:

Loan amounting to ` 100 million (as at 31.03.17: Nil) is taken from Mizhuho Bank Ltd. at an interest rate of 7.95%, repayable in 16

quarterly instalments. The above loan is secured by first pari passu charge on Group's plant & machinery excluding existing Chennai

Plant and first pari passu charge on current assets of the Group.

2. Loan repayable on demand from banks (Cash credit and Overdraft) amounting to ` 1,108 million at an interest rate of 8.30% to 8.70%,

repayable within 0-3 days (as at 31.03.17: ` 4,836 million at an interest rate of 7.25% to 10.50%, repayable within 0-5 days).

16.2 Breach of loan agreement There have been no breach of covenants mentioned in the loan agreements during the reporting periods.

17. Other Financial Liabilities

As at 31.03.2018

As at

31.03.2017

Current Financial liabilities carried at amortised cost Payables to capital creditors 9,881 8,308

Deposits from dealers, contractors and others 2,862 3,734

Interest accrued 20 27

Unpaid dividend * 12 8

Book overdraft 548 914

Others 13 37

Derivatives designated and effective as hedging instruments carried at fair valueForeign currency forward contract designated in hedge accounting relationships 2 -

13,338 13,028

* There are no amounts due for payment to the Investor Education and Protection Fund under Section 125(1) of the Companies Act, 2013.

18. Provisions

As at 31.03.2018

As at

31.03.2017

Non-currentProvisions for employee benefits


Other provisions


265 219 Current Provisions for employee benefits


Provision for compensated absences 2,925 2,548

Other provisions

Provision for litigation / disputes 2,118 1,734


5,609 4,498



227

Details of other provisions


2017-2018 2016-2017 2017-2018 2016-2017

Balance as at the beginning of year 1,734 1,645 369 333

Addition during the year 455 100 1,243 687

Utilised during the year - - 850 651

Reversed during the year 71 11 - -

Balance as at the end of year 2,118 1,734 762 369


31.03.2018 31.03.2017 31.03.2018 31.03.2017

Classified as long term - - 199 156

Classified as short term 2,118 1,734 563 213

Total 2,118 1,734 762 369

Provisions for employee benefits The provision for employee benefits include compensated absences and retirement allowance.

Provision for warranty and product recall Provision is made for estimated warranty claims in respect of products sold which are still under warranty at the end of the reporting

period. These claims are expected to be settled as and when warranty claims will arise. Management estimates the provision based on

historical warranty claim information and any recent trends that may suggest future claims could differ from historical amounts.

Provision for litigation / disputes In the ordinary course of business, the Group faces claims by various parties. The Group assesses such claims and monitors the legal

environment on an ongoing basis, with the assistance of external legal counsel, wherever necessary. The Group records a liability for

any claims where a potential loss probable and capable of being estimated and discloses such matters in its financial statements, if

material. For potential losses that are considered possible, but not probable, the Group provides disclosure in the financial statements

but does not record a liability in its accounts unless the loss becomes probable (also refer to note 40).




228

19. Deferred Tax Balances

The following is the analysis of deferred tax assets / (liabilities) presented in the consolidated balance sheet

As at 31.03.2018

As at

31.03.2017

Deferred tax assets 3,186 6,038

Deferred tax liabilities 9,206 11,096

Net deferred tax liabilities 6,020 5,058

Opening Balance

Recognised in profit or loss

Recognised in OCI

Adjustments* Closing Balance

2016-17Deferred tax assetsDeferred revenue 2,844 (752) - - 2,092

Capital loss carry forwards # 1,936 - - (164) 1,772

Expenses deductible in future years 1,237 94 58 272 1,661

Provision for litigation / dispute 189 75 - (8) 256

Provision for doubtful debts / advances 69 19 - - 88

Others 47 105 - 17 169

6,322 (459) 58 117 6,038 Deferred tax liabilitiesProperty, plant and equipment and Intangible assets 4,703 122 - (42) 4,783

Investment in debt mutual funds 1,927 2,245 - - 4,172

Investment in equity instruments 31 - (3) - 28

Other current & non-current asset 1,585 (83) - 223 1,725

Cashflow hedges 25 - (25) - -

Undistributed profit of joint ventures and associates 338 50 - - 388

8,609 2,334 (28) 181 11,096 Net deferred tax liabilities 2,287 2,793 (86) 64 5,058 2017-18Deferred tax assetsDeferred revenue 2,092 (898) - - 1,194

Capital loss carry forwards 1,772 (56) - (1,716) -

Expenses deductible in future years 1,661 (147) - 54 1,568

Provision for litigation / dispute 256 4 - (56) 204

Provision for doubtful debts / advances 88 11 - - 99

Others 169 (14) 65 (99) 121

6,038 (1,100) 65 (1,817) 3,186 Deferred tax liabilitiesProperty, plant and equipment and Intangible assets 4,783 (1,219) - (186) 3,378

Investment in debt mutual funds 4,172 (170) - (4) 3,998

Investment in equity instruments 28 - 26 - 54

Other current & non-current asset 1,725 (392) - 18 1,351

Cashflow hedges - - (1) - (1)

Undistributed profit of joint ventures and associates 388 38 - - 426

11,096 (1,743) 25 (172) 9,206 Net deferred tax liabilities 5,058 (643) (40) 1,645 6,020

* On account of reclassification to/from "Deferred Tax" from/to "Provision for Taxation"

# Deferred tax asset on capital loss carry forwards has been recognised as it is probable that future taxable profit will be available on gain on investment in debt

mutual funds, against which the tax losses can be utilised.

Note: Deferred tax assets and deferred tax liabilities have been offset as they are governed by the same taxation laws.



229

20. Other Liabilities

As at 31.03.2018

As at

31.03.2017

Non-currentDeferred revenue 15,859 11,055

15,859 11,055 CurrentAdvance from customers 11,524 9,407

Deferred revenue 4,651 3,584

Statutory dues 4,721 5,239

Others - 48

20,896 18,278

21. Trade Payables

As at 31.03.2018

As at

31.03.2017

Total outstanding dues to micro, small and medium enterprises* 711 832

Total outstanding dues to creditors other than micro, small and medium enterprises 104,282 82,860

104,993 83,692

Note:

The Company pays its vendors within 30 days and no interest during the year has been paid or is payable under the terms of the Micro,

Small and Medium Enterprises Development Act, 2006.

*Dues to micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis

of intimation received from the “suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act,

2006.

22. Current Tax

As at 31.03.2018

As at

31.03.2017

Current tax assetsTaxes paid (net) 4,115 4,910

Current tax liabilities Income tax payable (net) 8,541 8,036




230

23. Revenue From Operations


Year ended

31.03.2017

Sale of products (including excise duty)* Vehicles 731,314 696,253

Spare parts / dies and moulds / components 72,174 65,308

803,488 761,561 Other operating revenues Income from services 5,234 4,247

Sale of scrap 4,991 3,835

Recovery of service charges 1,076 889

Liabilities no longer required written back 852 35

Rental Income 433 370

Others 4,337 2,227

16,923 11,603 820,411 773,164

* Refer Note - 45

24. Other Income


Year ended

31.03.2017

Interest income on Bank deposits 9 17

Income tax refund 330 -

Receivables from dealers 337 343

Advance to vendors - 16

Others 6 2

682 378 Dividend income

Dividend from equity investments 200 129 200 129

Other gains and losses

Net gain on sale of investments in associates - 99

Net gain on sale of investments in debt mutual funds 964 614

Fair valuation gain on investment in debt mutual funds 18,612 21,403

Net foreign exchange gains - 273

19,576 22,389 20,458 22,896

25. Material Consumed

25.1 Cost of materials consumed


Year ended

31.03.2017

Raw material at the beginning of year 13,650 17,295

Add: Purchases during the year 450,150 422,634

Less: Raw material at the end of year 14,368 13,650

449,432 426,279



231

25.2 Changes in inventories of finished goods, work-in-progress and stock-in-trade


Year ended

31.03.2017

Opening balances Work in progress 1,546 1,643


Vehicle 12,330 7,695


Traded goods


16,986 12,305 Closing balancesWork in progress 1,772 1,546


Vehicle 9,700 12,330


Traded goods


14,706 16,986

Excise duty on increase / (decrease) of finished goods (1,872) 888

408 (3,793)

26. Employee Benefits Expenses


Year ended

31.03.2017

Salaries and wages 25,179 21,028

Contribution to provident and other funds 1,354 974

Staff welfare expenses 2,101 1,601

28,634 23,603

27. Finance Costs


Year ended

31.03.2017

Interest costs: Foreign currency loans - 14

Cash credit and overdrafts 280 445

Deposits from dealers, contractors and others 630 434

Interest on enhanced compensation for land 2,548 -

3,458 893

Other borrowing costs - 1

3,458 894




232

28. Depreciation and Amortisation Expenses


Year ended

31.03.2017

Depreciation of property, plant and equipment 26,475 25,094

Amortisation of intangible assets 1,123 945

27,598 26,039

29. Other Expenses


Year ended

31.03.2017

Consumption of stores 2,362 2,241

Power and fuel [net of amount recovered ` 789 million (previous year ` 673 million)] 6,734 5,186

Rent (refer to note 37) 3,253 334

Repair and maintenance: plant and machinery 2,222 1,711

Repair and maintenance: building 561 445

Repair and maintenance: others 467 468

Insurance 164 151

Rates, taxes and fees 431 2,411

Royalty 37,672 38,480

Tools / machinery spares charged off 3,807 3,833

Exchange variation on foreign currency transactions (net) 909 -

Advertisement 8,686 8,324

Sales promotion 8,391 5,516

Warranty and product recall 1,243 687

Transportation and distribution expenses 7,684 5,182

Net loss on sale / discarding of property, plant and equipment 545 632

Corporate social responsibility expenses 1,252 896

Other miscellaneous expenses * 13,573 10,783

99,956 87,280

* Does not include any item of expenditure with a value of more than 1% of the revenue from operation

Note on Corporate Social Responsibility Gross amount required to be spent by the Group during the year ` 1,213 million.

Amount spent during the year on:


Year ended

31.03.2017

(i) Construction / acquisition of any asset

- in cash - -


- - (ii) On purpose other than above

- in cash 1,252 896


1,252 896

(i) + (ii) 1,252 896



233

30. Income Taxes

30.1 Income tax recognised in profit or loss


Year ended

31.03.2017

Current taxIn respect of the current year 33,669 23,259

In respect of prior years (164) 110

33,505 23,369

Deferred taxIn respect of the current year (643) 2,793

(643) 2,793

Total income tax expense recognised in the current year 32,862 26,162

The income tax expense for the year can be reconciled to the accounting profit as follows


Year ended

31.03.2017

Profit before tax 111,669 101,272 Tax at the Indian Tax Rate of 34.608% ( previous year 34.608%) 38,646 35,048

Weighted deduction for research and development expenses (1,375) (2,215)

Additional deduction on plant and machinery - (1,505)

Differential tax rate on fair value gain on investment (2,330) (4,630)

Differential tax rate on capital gain on sale of investments (1,621) (402)

Effect of expenses that are not deductible in determining taxable profit 236 311

Investment in associates and joint ventures (565) (598)

Deferred tax on undistributed profit 38 50

Others (3) (7)

33,026 26,052Adjustments recognised in the current year in relation to the current tax of prior years (164) 110

Income tax expenses recognised in profit or loss 32,862 26,162

The tax rate used for the FY18 reconciliations above is the corporate tax rate of 34.608% (previous year 34.608%) payable by corporate

entities in India on taxable profits under the Indian tax law.

30.2 Income tax recognised in other comprehensive income


Year ended

31.03.2017

Deferred tax assets / (liabilities)Arising on income and expenses recognised in other comprehensive income Net fair value gain on investment in equity shares at FVTOCI (26) 3

Net gain on designated portion of hedging instruments in cash flow hedges 1 25

Remeasurement of defined benefit obligation 65 58

Total income tax recognised in other comprehensive income 40 86 Bifurcation of the income tax recognised in other comprehensive income into : -Items that will not be reclassified to profit or loss 39 61

Items that may be reclassified to profit or loss 1 25

40 86




234

31. Segment Information

The Group is primarily in the business of manufacturing, purchase and sale of motor vehicles, components and spare parts ("automobiles").

The other activities of the Group comprise facilitation of pre-owned car sales, fleet management car financing and servicing of the car

manufactured by the Group. The income from these activities is not material in financial terms but such activities contribute significantly

in generating demand for the products of the Group.

The board of directors, which has been identified as being the chief operating decision maker (CODM), evaluates the Group's

performance, allocate resources based on the analysis of the various performance indicator of the Group as a single unit. Therefore

there is no reportable segment for the Group.

31.1 Group wide disclosure

Domestic Overseas Total

Revenue from operations2017-18 762,203 58,208 820,4112016-17 712,400 60,764 773,164

Non current segment assetsAs at 31.03.2018 161,782 - 161,782As at 31.03.2017 149,673 - 149,673

a) Domestic information includes sales and services rendered to customers located in India.

b) Overseas information includes sales and services rendered to customers located outside India.

c) Non-current segment assets includes property, plant and equipment, capital work in progress, intangible assets and capital

advances.

32. Earnings Per Share


Year ended

31.03.2017

Basic earnings per share (`) 260.88 248.64

Diluted earnings per share (`) 260.88 248.64

Profit attributable to the equity holders of the Group used in calculating basic earnings per share and diluted

earnings per share

78,807 75,110

Weighted average number of equity shares for the purpose of basic earnings per share and diluted earnings per

share (numbers)

302,080,060 302,080,060

33. Employee Benefit Plans

The various benefits provided to employees by the Group are as under:

A. Defined contribution plans a) Superannuation fund

b) Post Employment Medical Assistance Scheme

c) Employers contribution to Employee State Insurance

d) Employers contribution to Employee's Pension Scheme 1995



235

During the year the Group has recognised the following amounts in the statement of profit and loss:


Year ended

31.03.2017

Employers contribution to Superannuation Fund * 82 77

Employers contribution on Post Employment Medical Assistance Scheme * 10 10

Employers contribution to Employee State Insurance* 77 14

Employers contribution on Employee's Pension Scheme 1995* 286 266

* Included in 'Contribution to provident and other funds'

B. Defined benefit plans and other long term benefits a) Contribution to Gratuity Funds - Employee's Gratuity Fund

b) Leave encashment / compensated absence

c) Retirement allowance

d) Provident fund

These plans typically expose the Group to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk. Investment risk

The probability or likelihood of lower returns as compared to the expected return on any particular investment.

Interest risk

The plan exposes the Group to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of

providing the above benefit and will thus result in an increase in the value of the liability.

Longevity risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants

both during and after employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future.

Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present

value of obligation will have a bearing on the plan's liabilty.

The principal assumptions used for the purpose of the actuarial valuations were as follows:

Provident Fund


Absence

Employees Gratuity

Fund











236

Components of expenses recognised in the statement of profit or loss in respect of:

Provident Fund


Absence

Employees Gratuity

Fund


Year ended 31.03.18Current service cost 551 328 132 12




Expenses recognised in profit and loss 551 806 333 17 Year ended 31.03.17Current service cost 485 222 122 12




Expenses recognised in profit and loss 485 843 122 16

Components of expenses recognised in the other comprehensive income in respect of:

Provident Fund


Absence

Employees Gratuity

Fund


Year ended 31.03.18Actuarial (gains) / losses


- changes in financial assumptions - - (74) (1)


- others - - - -

Return on plan assets, excluding amount recognised in net interest expense - - 59 -


of asset ceiling

- - - -


- - 210 (14)

Year ended 31.03.17 Actuarial (gains) / losses


- changes in financial assumptions - - 108 4


- others - - - -

Return on plan assets, excluding amount recognised in net interest expense - - (93) -


of asset ceiling

- - - -


- - 167 (8)

The current service cost and the interest expense for the year are included in the 'Employee benefits expense' in the profit or loss.

The remeasurement of the net defined benefit liability is included in other comprehensive income



237

The amount included in the balance sheet arising from the entity's obligation in respect of its defined benefit plans is as follows:

Provident Fund


Absence

Employees Gratuity

Fund


As at 31.03.18 Present value of obligation 16,672 2,925 2,938 69


Surplus / (deficit) 620 (2,925) 8 (69) Effects of asset ceiling, if any * 620 - 8 -

Net asset / (liability) - (2,925) - (69) As at 31.03.17 Present value of obligation 13,938 2,548 2,401 66


Surplus / (deficit) 309 (2,548) 4 (66) Effects of asset ceiling, if any * 309 - 4 -

Net asset / (liability) - (2,548) - (66)

* The Company has an obligation to make good the shortfall, if any.

Classification into long term and short term:

Provident Fund


Absence

Employees Gratuity

Fund


As at 31.03.18 Classified as long term - - - 66


Total - 2,925 - 69 As at 31.03.17 Classified as long term - - - 63


Total - 2,548 - 66




238

Movement in the present value of the defined benefit obligation are as follows:

Provident Fund


Absence

Employees Gratuity

Fund






Remeasurement (or actuarial) (gain) / loss arising from: - - - -


- change in financial assumptions - (34) (74) (1)


- others - - - -

Past service cost - (3) 196 -

Benefits paid (669) (425) (124) -








- change in financial assumptions - 62 110 3


- others - - - -


Benefits paid (538) (401) (132) -


Movement in the fair value of the plan assets are as follows:

Provident Fund




Employees' contribution 1,542 -

Transfer in 10 (5)


Actuarial Gain/(Loss) on Plan Assets 379 (56)




239

Provident Fund




Employees' contribution 1,325 -

Transfer in 234 -


Actuarial Gain/(Loss) on Plan Assets 46 93


Major categories of plan assets (as percentage of total plan assets)

Provident Fund









Total 100% 100%








Total 100% 100%

The fair value of the above ULIP schemes are determined based on the Net Asset Value (NAV). Moreover, for other investments the fair

value is taken as per the account statements of the insurance companies.

The average duration of the defined benefit obligation of gratuity fund at 31.03.18 is 14 years (as at 31.03.17: 12 years).

The Group expects to make a contribution of ` 173 million (as at 31.03.17: ` 160 million) to the defined benefit plans during the next

financial year.

Sensitivity analysis Significant actuarial assumption for the determination of defined obligation are discount rate, expected salary growth rate, attrition

rate and mortality rate. The sensitivity analysis below have been determined based on reasonably possible changes in respective

assumption occurring at the end of reporting period, while holding all other assumptions constant.

If the discount rate increases (decreases) by 1%, the defined benefit obligation would decrease by ` 508 million (increase by ` 604

million) (as at 31.03.17: decrease by ` 410 million (increase by ` 485 million)).

If the expected salary growth rate increases (decreases) by 1%, the defined benefit obligation would increase by ` 567 million

(decrease by ` 490 million) (as at 31.03.17: increase by ` 436 million (decrease by ` 363 million)).




240

34. Financial Instruments And Risk Management

34.1 Financial instruments by category

As at 31.03.2018 As at 31.03.2017

FVTPL FVOCI Amortised cost

Total Carrying

Value

FVTPL FVOCI Amortised

cost

Total

Carrying

Value

Financial assetsInvestments *

- in equity instruments - 10,771 - 10,771 - 7,301 - 7,301

- in debt mutual funds 340,820 - - 340,820 276,198 - - 276,198

Trade Receivable - - 14,654 14,654 - - 12,026 12,026

Cash and bank balances - - 740 740 - - 235 235

Loans - - 32 32 - - 28 28

Security deposits - - 200 200 - - 113 113

Foreign currency / commodity forward contracts 109 - - 109 163 - - 163


Recoverable from related parties - - 2,464 2,464 - - 624 624

Others - - 379 379 - - 271 271

Total financial assets 340,929 10,771 18,491 370,191 276,361 7,301 13,318 296,980 Financial liabilitiesBorrowings - - 1,208 1,208 - - 4,836 4,836

Trade payables - - 104,993 104,993 - - 83,692 83,692

Deposits from dealers, contractors and others - - 2,862 2,862 - - 3,734 3,734

Payable to capital creditors - - 9,881 9,881 - - 8,308 8,308


Unpaid dividend - - 12 12 - - 8 8

Book overdraft - - 548 548 - - 914 914

Foreign currency / commodity forward contracts - 2 - 2 - - - -

Others - - 13 13 - - 37 37

Total financial liabilities - 2 119,537 119,539 - - 101,556 101,556

* Investment value excludes carrying value of equity accounted investment in joint ventures and investment in associates of ` 9,639

million (as at 31.03.2017 ` 8,007 million).

Fair value hierarchy The following table provides an analysis of financial instruments that are measured at fair value and have been grouped into Level 1,

Level 2 and Level 3 below:




Quoted equity instruments 6 10,334 - - 10,334 Unquoted equity instruments 6 - - 437 437 Total financial assets 318,852 32,411 437 351,700 Financial liabilities Financial instruments at FVTPL

Foreign currency / commodity forward contracts 17 - 2 - 2

- 2 - 2



241




Quoted equity instruments 6 6,984 - - 6,984 Unquoted equity instruments 6 - - 317 317 Foreign currency / commodity forward contracts 9 - - - -

Total financial assets 244,095 39,250 317 283,662

Level 1: Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted

prices in the active market. This category consists of quoted equity shares and debt based open ended mutual funds.

Level 2: Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted

prices included within Level 1 that are observable for such items, either directly or indirectly. This level of hierarchy consists of debt

based close ended mutual fund investments and over the counter (OTC) derivative contracts.

Level 3: Valuation techniques with unobservable inputs. This level of hierarchy includes items measured using inputs that are not

based on observable market data (unobservable inputs). Fair value determined in whole or in part, using a valuation model based on

assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on

available market data. The main item in this category are unquoted equity instruments.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction

between market participants. The following methods and assumptions were used to estimate the fair values:

Investments in debt mutual funds: Fair value is determined by reference to quotes from the financial institutions, ie. Net asset value

(NAV) for investments in mutual funds declared by mutual fund house.

Derivative contracts: The Group has entered into variety of foreign currency and commodity forward contracts and swaps to manage

its exposure to fluctuations in foreign exchange rates and commodity price risk. These financial exposures are managed in accordance

with the Group’s risk management policies and procedures. Fair value of derivative financial instruments are determined using valuation

techniques based on information derived from observable market data.

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

Unquoted equity investments: Fair value is derived on the basis of income approach, in this approach the discounted cash flow method

is used to capture the present value of the expected future economic benefits to be derived from the ownership of these investments.




242

Reconciliation of Level 3 fair value measurement

Unlisted equity instruments

As at 01.04.2016 207

Acquisition -

Gains/(losses) recognised


As at 31.03.2017 317 Acquisition -

Gains/(losses) recognised

- in other comprehensive income 120 As at 31.03.2018 437

34.2 Financial risk management The Group's activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial

performance of the Group, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option

contracts are entered to hedge certain foreign currency risk exposures and interest rate swaps to hedge variable interest rate

exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge

accounting in the financial statements.

Risk Exposure arising from Measurement ManagementCredit risk Cash and cash equivalents, trade receivables,

derivative financial instruments, financial assets

measured at amortised cost

Aging analysis

Credit rating

Diversification of bank deposits,

credit limits and letter of credit

Liquidity risk Business commitment and other liabilities Rolling cash flow forecasts Availability of committed credit

lines and borrowing facilities

Market risk -

foreign exchange

Future commercial transactions

Recognised financial assets and liabilities not

denominated in Indian rupee (`)

Cash flow forecasting

Sensitivity analysis

Forward foreign exchange

contracts Foreign currency options

Market risk - interest rate Borrowings at variable rates Sensitivity analysis Interest rate swaps

Market risk - security prices Investments in equity instruments and debt mutual funds Sensitivity analysis Portfolio diversification

The financial risk management of the Group is carried out under the policies approved by the Board of Directors. Within these policies,

the Board provides written principles for overall risk management including policies covering specific areas, such as foreign exchange

risk management, commodity risk management and investment of funds.

(A) Credit risk Credit risk arises from the possibility that the counter party may not be able to settle their obligations. To manage trade receivable, the

Group periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis

of historical bad debts and aging of such receivables.

Financial instruments that are subject to such risk, principally consist of investments, trade receivables, loans and advances and

derivative instruments. None of the financial instruments of the Group results in material concentration of credit risks.

Financial assets for which loss allowance is measured:

Notes No As at 31.03.2018

As at

31.03.2017

Loans - non current 7 125 125

Trade receivables 8 26 6

Other financial assets - current 9 0 4



243

Other than financial assets mentioned above, none of the finanacial assets were impaired and there were no indications that defaults

in payment obligations would occur.

(B) Liquidity risk Liquidity risk refers to the risk that the Group can not meet its financial obligations. The objective of liquidity risk management is to

maintain sufficient liquidity and to ensure funds are available for use as per the requirements.

The Group operates with a low Debt Equity ratio. The Group raises short term rupee borrowings for cash flow mismatches and hence

carries no significant liquidity risk. The Group has access to the borrowing facilities of ̀ 29,850 million as at 31.03.2018 (` 28,450 million

as at 31.03.2017) to honour any liquidity requirements arising for business needs. The Group has large investments in debt mutual

funds which can be redeemed on a very short notice and hence carries negligible liquidity risk.

(i) Financing arrangements

The Group had access to the following borrowing facilities at the end of the reporting period:

As at 31.03.2018

As at

31.03.2017

Floating rate - Expiring within one year (bank overdraft and other facilities) 29,850 28,450

- Expiring beyond one year (bank loans) - -

29,850 28,450

(ii) Maturities of financial liabilities

The tables below analyse the Group's financial liabilities into relevant maturity groupings based on their contractual maturities:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying

balances as the impact of discounting is not significant.

Contractual maturities of financial liabilities


As at 31.03.2018Borrowings 1,108 100 1,208



119,439 100 119,539

As at 31.03.2017Borrowings 4,836 - 4,836



101,556 - 101,556

(C) Market risk (i) Foreign currency risk

The Group has exposure to foreign currency risk on account of its payables and receivables in foreign currency which are mitigated

through the guidelines under the foreign currency risk management policy approved by the board of directors. The Group enters into

derivative financial instruments to mitigate the foreign currency risk and interest rate risk including,

a) forward foreign exchange and options contracts for foreign currency risk mitigation

b) foreign currency interest rate swaps to mitigate foreign currency & interest rate risk on foreign currency loan.




244

Foreign currency risk exposure The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting

periods expressed in INR, are as follows:

(In Millions)



Foreign exchange derivative contracts - (776) - - -

Net exposure to foreign currency risk (assets) 2,700 1,824 71 - - Financial liabilitiesTrade payables and other financial liabilites 17,991 1,899 1,327 4 155


Net exposure to foreign currency risk (liabilities) 12,818 1,899 569 4 155


Foreign exchange derivative contracts - - - - -

Net exposure to foreign currency risk (assets) 2,248 2,224 38 - - Financial liabilitiesBorrowings - - - - -

Trade payables and other financial liabilites 18,564 1,392 1,647 8 -


Net exposure to foreign currency risk (liabilities) 3,472 1,392 864 8 -

Foreign currency sensitivity analysis The Group is mainly exposed to JPY, USD and EURO.

The following table details the Group's sensitivity to a 10% increase and decrease in the INR against the relevant foreign currencies.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their

translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans. A positive

number below indicates an increase in profit or equity and vice-versa.

Year ended 31.03.2018 Year ended 31.03.2017

` strengthens by 10%

` weakening by 10%

` strengthens by

10%

` weakening by

10%

Impact on profit or loss for the year

JPY impact 1,529 (1,529) 1,632 (1,632)

USD Impact (70) 70 (83) 83

EURO Impact 126 (126) 161 (161)



245

(ii) Security price risk

Exposure in equity

The Group is exposed to equity price risks arising from equity

investments held by the Company and classified in the balance

sheet as fair value through OCI.

Equity price sensitivity analysis

The sensitivity analysis below have been determined based on

the exposure to equity price risks at the end of the reporting

period.

If the equity prices had been 5% higher / lower:

Other comprehensive income for the year ended 31st March

2018 would increase / decrease by ` 539 million (for the year

ended 31st March 2017: increase / decrease by ` 365 million) as

a result of the change in fair value of equity investment measured

at FVTOCI.

Exposure in mutual funds

The Group manages the surplus funds majorly through

investments in debt based mutual fund schemes. The price of

investment in these mutual fund schemes is reflected though

Net Asset Value (NAV) decleared by the Asset Management

Company on daily basis as reflected by the movement in the NAV

of invested schemes. The Group is exposed to price risk on such

Investments.

Mutual fund price sensitivity analysis

The sensitivity analysis below have been determined based

on Mutual Fund Investment at the end of the reporting

period.

If NAV has been 1% higher / lower:

Profit for year ended 31.03.2018 would increase / decrease by

` 3,408 million (for the year ended 31.03.2017 by ̀ 2,762 million) as

a result of the changes in fair value of mutual fund investments.

34.3 Capital management The Group's objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that

they can continue to provide returns for shareholders and benefits

for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Group

may adjust the amount of dividends paid to shareholders, return

capital to shareholders or issue new shares.

The Group has large investments in debt mutual fund schemes

where in underlying portfolio is spread across securities issued

by different issuers having different credit ratings. The credit

risk of investments in debt mutual fund schemes is managed

through investment policies and guidelines requiring adherence

to stringent credit control norms based on external credit ratings.

The credit quality of the entire portfolio investments is monitored

on a quarterly basis. The Group's overall strategy remains

unchanged from previous year.




246

The following table details the debt and equity at the end of the reporting period:

As at 31.03.2018

As at

31.03.2017

Borrowings 1,208 4,836

Cash and cash equivalents (728) (227)

Net debt 480 4,609

Total equity 425,594 370,751

Net debt to equity ratio 0.001 0.012

The Company is not subject to any externally imposed capital requirements.

34.4 Foreign exchange derivative contracts The Group follows a consistent policy of mitigating foreign exchange risk by entering into appropriate hedging instruments as considered

necessary from time to time. Depending on the future outlook on currencies, the Group may keep the exposures unhedged or hedged

only as a part of the total exposure.

The Company does not enter into a foreign exchange derivative transactions for speculative purposes.

The following table details the foreign currency derivative contracts outstanding at the end of the reporting period:

Outstanding Contracts Avg. Exchange Rate Foreign Currency Nominal Amount Fair value asset / (liability)

Cash flow hedgesSell USD (Less than 3 months)31.03.2018 65.18 12 785 (2)

31.03.2017 - - - -

35. Details Of Group Companies

35.1 Maruti Suzuki India Limited (The Company) has two subsidiaries, two joint venture companies and thirteen associate companies (The Group), as given in the following table:

Sl No Name of Company Relationship Country of

Incorporation

Percentage of ownership interest

As on 31st March 2018

As on

31st March 2017

1 True Value Solutions Limited Subsidiary India 100.00 100.00

2 J.J Impex (Delhi) Private Limited Subsidiary India 50.87 50.87

3 Plastic Omnium Auto Inergy Manufacturing India Private

Limited

Joint Venture India 26.00 26.00

4 Magneti Marelli Powertrain India Private Limited Joint Venture India 19.00 19.00

5 Bharat Seats Limited Associates India 14.81 14.81

6 Jay Bharat Maruti Limited Associates India 29.28 29.28

7 Machino Plastics Limited Associates India 15.35 15.35

8 Caparo Maruti Limited Associates India 25.00 25.00

9 Hanon Climate Systems India Private Limited Associates India 39.00 39.00

10 Krishna Maruti Limited Associates India 15.80 15.80

11 SKH Metals Limited Associates India 37.03 37.03

12 Nippon Thermostat (India) Limited Associates India 10.00 10.00

13 Mark Exhaust Systems Limited Associates India 44.37 44.37

14 Bellsonica Auto Component India Private Limited Associates India 30.00 30.00

15 FMI Automotive Components Private Limited Associates India 49.00 49.00

16 Manesar Steel Processing India Private Limited Associates India 11.83 11.83

17 Maruti Insurance Broking Private Limited Associates India 46.26 46.26



247

35.2 Additional information as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as Subsidiaries/Associates/Joint Ventures

Name of Company Net Assets (Total Assets less Total Liability) Share in Profit & Loss

As at 31st March 2018 As at 31st March 2017 FY 17-18 FY 16-17

As a % of Consolidated

Net Asset

Amount As a % of

Consolidated

Net Asset

Amount As a % of Consolidated

Total Comprehensive

Income

Amount As a % of

Consolidated

Total

Comprehensive

Income

Amount

Parent Company1 Maruti Suzuki India Limited 98.08% 417,573 98.22% 364,311 98.06% 80,530 97.92% 75,719

Subsidiaries

1 True Value Solutions Limited 0.00% 2 0.00% 2 0.00% - 0.00% -

2 J.J Impex (Delhi) Private Limited 0.08% 328 0.08% 315 0.02% 13 0.03% 21

Adjustments arising out of

consolidation

(0.06%) (243) (0.05%) (235) (0.01%) (8) (0.01%) (9)

Total of Subsidiaries 0.02% 87 0.03% 82 0.01% 5 0.02% 12 Minority Interests in all subsidiaries 0.04% 161 0.04% 154 0.01% 7 0.01% 10 Joint Ventures1 Plastic Omnium Auto Inergy

Manufacturing India Private Limited

0.05% 210 0.05% 180 0.04% 30 0.05% 38

2 Magneti Marelli Powertrain India

Private Limited

0.29% 1,254 0.27% 1,017 0.29% 237 0.25% 197

Total of Joint Ventures 0.34% 1,464 0.32% 1,197 0.33% 267 0.30% 235 Adjustments arising out of consolidation 0.00% (2) 0.00% - 0.00% (2) 0.00% 2 Less: Investment in Joint Ventures (0.04%) (152) (0.04%) (152) 0.00% - 0.00% - Associates1 Bharat Seats Limited 0.03% 129 0.02% 92 0.05% 37 0.02% 13

2 Jay Bharat Maruti Limited 0.25% 1,055 0.24% 892 0.20% 163 0.20% 152

3 Machino Plastics Limited 0.02% 89 0.03% 97 -0.01% (8) 0.00% 2

4 Caparo Maruti Limited 0.09% 373 0.10% 357 0.02% 16 0.04% 32

5 Hanon Climate Systems India Private

Limited

0.18% 771 0.20% 751 0.02% 20 0.08% 61

6 Krishna Maruti Limited 0.15% 630 0.13% 491 0.17% 139 0.17% 128

7 SKH Metals Limited 0.12% 504 0.12% 463 0.05% 41 0.14% 110

8 Nippon Thermostat (India) Limited 0.00% 4 0.00% 4 0.00% - 0.00% -

9 Mark Exhaust Systems Limited 0.07% 283 0.07% 256 0.03% 27 0.03% 21

10 Bellsonica Auto Component India

Private Limited

0.08% 354 0.08% 289 0.08% 65 0.15% 118

11 FMI Automotive Components Private

Limited

0.14% 576 0.13% 489 0.11% 87 0.08% 65

12 Manesar Steel Processing India

Private Limited

0.01% 45 0.01% 42 0.00% 3 0.00% 1

13 Maruti Insurance Broking Private

Limited

0.79% 3,363 0.70% 2,587 0.94% 776 1.02% 789

Total of Associates 1.92% 8,176 1.83% 6810 1.66% 1366 1.93% 1492 Adjustments arising out of consolidation (0.01%) (44) (0.01%) (27) (0.02%) (17) (0.13%) (104)Less: Investment in Associates (0.25%) (1,082) (0.29%) (1,082) 0.00% - 0.01% 10 Deferred Tax Liabilities on Undistributed Profits of associates and joint ventures

(0.10%) (426) (0.10%) (388) (0.05%) (38) (0.06%) (50)

Total 100.00% 425,755 100.00% 370,905 100.00% 82,118 100.00% 77,326

35.3 The Profit after tax of Bharat Seats Limited, Jay Bharat Maruti Limited, Machino Plastics Limited, Caparo Maruti Limited, Hanon

Climate Systems India Private limited, Krishna Maruti Limited, SKH Metals Limited, Nippon Thermostat (India) Limited, Bellsonica Auto

Component India Private limited, FMI Automotive Components Private Limited, Manesar Steel Processing India Private Limited, Magneti

Marelli Powertrain India Limited and Plastic omnium Auto Inergy Manufactuiring India Private Limited, have been taken on the basis

of unaudited financial statements for financial year ended 31st March 2018. It is unlikely that the audited results would be materially

different from unaudited results.




248

36. Related Party Transactions36.1 Description of related parties

Holding Company Suzuki Motor Corporation, Japan (SMC)

Subsidiaries J.J. Impex (Delhi) Private Limited


Joint Ventures Magneti Marelli Powertrain India Private Limited

Plastic Omnium Auto Inergy Manufacturing India Private Limited

Associates Bharat Seats Limited

Caparo Maruti Limited

Jay Bharat Maruti Limited

Krishna Maruti Limited

Machino Plastics Limited

SKH Metals Limited

Nippon Thermostat (India) Limited

Bellsonica Auto Component India Private Limited

Mark Exhaust Systems Limited

FMI Automotive Components Private Limited

Maruti Insurance Broking Private Limited

Manesar Steel Processing India Private Limited

Hanon Climate Systems India Private Limited

Fellow Subsidiaries (only with whom the Company had transactions during the current year) Magyar Suzuki Corporation Ltd.

Suzuki Motor Gujarat Private Limited

Suzuki Assemblers Malaysia Sdn.Bhd

Cambodia Suzuki Motor Co. Ltd.

Suzuki Motor De Mexico

Vietnam Suzuki Corporation

Suzuki International Europe G.M.B.H.

Suzuki Australia Pty. Ltd.

Suzuki Motor Poland Sp. Z.O.O.

Suzuki Gb Plc

Suzuki Auto South Africa (Pty) Ltd

Suzuki Philippines Inc.

Taiwan Suzuki Automobile Corporation

Suzuki Motor (Thailand) Co., Ltd.

Suzuki Thilawa Motor Co. Ltd

Suzuki Motorcycle India Ltd.

Thai Suzuki Motor Co., Ltd.

Suzuki (Myanmar) Motor Co., Ltd.

Suzuki Malaysia Automobile Sdn. Bhd.

Suzuki New Zealand Ltd.

Pt Suzuki Indomobil Motor

Suzuki Austria Automobile Handels G.M.B.H.

Suzuki France S.A.S.

Suzuki Italia S.P.A.

Suzuki Motor Iberica, S.A.U.

Key Management Personnel (KMP)Mr R. C. Bharagava

Chairman

Mr. Kenichi Ayukawa

Managing Director & CEO

Mr. Kazunari Yamaguchi

Director (w.e.f. January 26, 2018)

Mr. O. Suzuki

Director

Mr. T. Suzuki

Director

Mr. Toshiaki Hasuike

Director


Director (till January 25, 2018)

Mr. K. Ayabe

Director

Mr. K. Saito

Director

Mr. Davinder Singh Brar


Mr. Rajinder Pal Singh Independent Director

Ms. Pallavi Shroff


Ms. Renu Sud Karnad


Mr. Ajay Seth

Chief Financial Officer

Mr. S. Ravi Aiyar

Company Secretary (till February 28, 2018)

Mr. Sanjeev Grover

Company Secretary (w.e.f. March 21, 2018)

Late Mr. Amal Ganguli (till May 7, 2017)




249

36.2 Transaction with related parties


For the year ended

31.03.2017

Sale of goods to: - Holding Company 22,836 25,660


- Suzuki Motorcycle India Limited 8,106 6,691

- Others 8,549 7,863

39,491 40,214 Sale of property, plant & equipment to: - Fellow Subsidiaries


- Suzuki Motorcycle India Limited 205 235

230 355 Purchase of goods from: - Holding Company 14,150 15,116

- Associates

-Jay Bharat Maruti Limited 10,622 10,992

-Krishna Maruti Limited 13,739 13,230

-Others 34,996 35,416

- Joint Ventures 8,553 7,448


- Suzuki Motor Gujarat Private Limited 50,818 6,816

-Others 2,613 2,674

135,491 91,692 Purchase of property, plant & equipment and intangible assets from: - Holding Company 1,704 3,036

- Associates

- Jay Bharat Maruti Limited 524 1,192

- Krishna Maruti Limited 329 380

- Others 447 992



3,010 5,821 Finance income / commission / dividend from: - Associates


- Hanon Climate Systems India Private Limited 128 78

- Others 6 5


165 106 Other operating revenue / other income from: - Holding Company 347 660

- Associates 73 67


- Fellow Subsidiaries 140 81

565 814




250


For the year ended

31.03.2017

Recovery of expenses from: - Holding Company 440 90

- Associates



- Others 298 233




- Others 50 42

4,075 1,077 Services received from: - Holding Company 1,705 385

- Associates 5 1

1,710 386 Dividend paid to: - Holding Company 12,734 5,943

12,734 5,943 Royalty expenses: - Holding Company 40,352 38,480

40,352 38,480 Other expenses: - Holding Company 145 440

- Associates 33 41



-Suzuki Auto South Africa(Pty) Limited 190 82

- Others 32 69

3,322 633



251

As at 31.03.2018

As at

31.03.2017

Trade Receivables: - Holding Company 2,776 2,309

- Associates 34 55


- Suzuki Motorcycle India Limited 1,091 724


- Others 704 549

5,129 4,063 Other current assets:- Holding Company 26 127

- Associates


- Others 238 318



-Others 2 1


5,815 980 Other financial assets:- Holding Company 411 -

- Associates

- Caparo Maruti Limited 30 37



- Mark Exhaust Systems Limited 12 33


- Others 40 47




- Others 46 -

2,464 624 Other non current assets: - Holding Company 149 149

- Associates



-Bharat Seats Limited 147 1

- Others 19 34


1,020 622 Goods in transit: - Holding Company 1,526 3,634


- Others 129 418

1,655 4,052




252

As at 31.03.2018

As at

31.03.2017

Trade payables: - Holding Company 24,408 19,165

- Associates 6,616 10,723


- Fellow Subsidiaries 2,740 1,852

34,178 32,312

Other financial liabilities - Holding Company 1,634 1,063

- Associates


- FMI Automotive Components Private Limited 45 101

- Others 380 274



2,190 1,812

36.3 Key management personnel compensation


For the year ended

31.03.2017

Short-term benefits 163 161

Post-employment benefits 1 5

Other long-term benefits - 1

Total Compensation* 164 167 Mr. Kenichi Ayukawa 45 42

Mr. Ajay Seth 26 22

Mr. S. Ravi Aiyar 34 20

Mr. Toshiaki Hasuike 1 24

Mr. Shigetoshi Torii (till January 25, 2018) 20 31

Others 38 28

Total Compensation 164 167

*Refer to note-33 for employee benefit plans.



253

37. Operating Lease Arrangements

The Group as a LesseeLeasing arrangements

The Group has entered into operating lease arrangements for various land. These arrangements are non-cancellable in nature and

range between fifteen to ninty nine years. Lease rental expense is set out in note 29 as 'Rent' in 'Other expenses'. The future minimum

lease commitments under non-cancellable operating leases are as under:

Non-cancellable operating lease commitments

As at 31.03.2018

As at

31.03.2017



Later than five years 366 432

682 741

The Group as a Lessor Leasing arrangements

The Group has entered into operating lease arrangements for various land and premises. These arrangements are both cancellable

and non-cancellable in nature and range between three to fifteen years. Lease rental income earned by the Company is set out in Note

23 as ‘Rental income’. The future minimum lease receivables under non-cancellable operating leases are as under:

Non-cancellable operating lease receivables

As at 31.03.2018

As at

31.03.2017



Later than five years 1,117 1,234

1,656 1,744

38. Capital & Other Commitments

As at 31.03.2018

As at

31.03.2017

Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and

not provided for

32,718 27,682

Outstanding commitments under Letters of Credit established by the Group 2,162 1,348

39. Export Promotion Capital Goods (EPCG)

Export Promotion Capital Goods (EPCG) allows import of capital goods including spares for pre-production, production and post

production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be

fulfilled in 6 years reckoned from authorization issue date.

The company has been availing the benefit and has been importing capital goods under the scheme at zero custom duty. The company

has accounted for the benefits received in accordance with the Ind AS 20- Accounting for Government Grants and Disclosure of

Government Assistance.

254




The benefits (saving of custom duty) obtained from government has been treated as a Government Grant, which has been accounted

for as deferred benefit under other non-current liabilities in Note 19 and recognised as a cost of property, plant and equipment. As per

the EPCG scheme, the company has an export obligation equivalent to 6 times of duty saved. The deferred benefit accounted for, shall

be credited to statement of profit and loss on a pro-rata basis as and when the export obligation is fulfilled.

40. Contingent Liabilities

A) Claims against the Group disputed and not acknowledged as debts:

As at 31.03.2018

As at

31.03.2017

(i) Excise Duty (a) Cases decided in the Company’s favour by Appellate authorities and for which the department has filed


1,598 1,585



12,691 11,751


(ii) Service Tax (a) Cases decided in the Company’s favour by Appellate authorities and for which the department has filed


1,063 715



2,851 2,602

(c) Show cause notices on issues yet to be adjudicated 158 364

Total 4,072 3,681 Amount deposited under protest 61 52

(iii) Income Tax (a) Cases decided in the Company’s favour by Appellate authorities and for which the department has filed

further appeals

5,447 11,588

(b) Cases pending before Appellate authorities / Dispute Resolution Panel in respect of which the

Company has filed appeals

47,448 44,692


(iv) Custom Duty (a) Cases pending before Appellate authorities in respect of which the Company has filed appeals 108 108

(b) Others 60 51

Total 168 159 Amount deposited under protest 25 22

(v) Sales Tax Cases pending before Appellate authorities in respect of which the Company has filed appeals 70 70

Amount deposited under protest 20 20

(vi) Claims Claims against the Company lodged by various parties 1,020 734

(vii) Group's share in Associate's and Joint Venture's Contingent Liabilities Contingent liabilities incurred by the Group arising from its interest in joint venture (a) 168 263

Contingent liabilities incurred by the Group arising from its interest in associates (a) 1,973 1,267

Group's share of joint ventures' contingent liabilities (b) 32 66

Group's share of associates' contingent liabilities (b) 591 258

255



(a) A number of contingent liabilites have arisen as a result of the

Group's interest in its joint ventures and associates. The amount

disclosed represents the aggregate amount of such contingent

liabilities for which the Group as an investor is liable. The extent

to which an outflow of funds will be required is dependent

on the future operations of the joint venture. The Group is not

contingently liable for the liabilities of other venturers in the joint

ventures.

(b) The amount disclosed represents the Group's share of

contingent liabilities of joint ventures and associates. The extent

to which an outflow of funds will be required is dependent on the

future operations of the associates being more or less favourable

than currently expected.

(viii) In earlier years, pursuant to Court orders, the Haryana State

Industrial & Infrastructure Development Corporation Limited

("HSIIDC") had raised demands on the company amounting to

` 10,317 million towards payment of enhanced compensation

to landowners for the Company’s freehold land at Manesar,

Haryana. During the year HSIIDC has revised the demands to

` 9,717 million after adjusting ` 3,742 million paid by the Company

under protest in earlier years.

Against the above demands and pursuant to a scheme notified

by HSIIDC (for all allottees) to clear outstanding dues of enhanced

compensation in one-go (with partial relief in interest), the

Company during the current period cleared the above demands

by paying ` 9,234 million. This includes principal amounting to

` 5,949 million and interest of ` 3,285 million (` 2,507 million,

has been provided for during the current year) which has been

debited towards cost of land and charged off to the statement of

profit and loss respectively.

(ix) In respect of disputed Local Area Development Tax (LADT)

(upto April 15, 2008) / Entry Tax, the amounts under dispute are

` 21 million (as at 31.03.2017: ` 21 million) for LADT and ` 20

million (as at 31.03.2017: ` 19 million) for Entry Tax. The State

Government of Haryana has repealed the LADT effective from

April 16, 2008 and introduced the Haryana Tax on Entry of Goods

into Local Area Act, 2008 with effect from the same date.

(x) The Competition Commission of India (“CCI”) had passed

an order dated August 25, 2014 stating that the Company has

violated certain sections of the Competition Act, 2002 and has

imposed a penalty of ̀ 4,712 million. An interim stay is in operation

on the above order of the CCI pursuant to the writ petition filed by

the Company before the Delhi High Court.

B) The amounts shown in the item (A) represent the best possible

estimates arrived at on the basis of available information. The

uncertainties and possible reimbursements are dependent on

the outcome of the different legal processes which have been

invoked by the Group or the claimants as the case may be and

therefore cannot be predicted accurately or relate to a present

obligations that arise from past events where it is either not

probable that an outflow of resources will be required to settle or

a reliable estimate cannot be made. The Group engages reputed

professional advisors to protect its interests and has been advised

that it has strong legal positions against such disputes.

41. Scheme of Amalgamation

41.1 The Scheme of Amalgamation ('the Scheme') between the

Company (Amalgamated Company) and its seven wholly owned

subsidiaries (Amalgamating Companies), by the name Maruti





Limited and Maruti Insurance Broker Limited as approved by

the National Company Law Tribunal became effective w.e.f. the

appointed date, i.e., April 1, 2016 on completion of all required

formalities on July 11, 2017. The Scheme envisages transfer

of all properties, rights, powers, liabilities and duties of the

Amalgamating Companies to the Amalgamated Company.

41.2 Pursuant to the Scheme, the amalgamation has been

accounted in accordance with the Ind AS 103 “Business

Combinations” and the assets, liabilities and reserves of the

Amalgamating Companies have been accounted for at their book

value, in the books of the Amalgamated Company. The share

capital of the Amalgamating Companies have been cancelled with

the Amalgamated Company’s investment in the Amalgamating

Companies.

42. The Company entered into a ‘Contract Manufacturing

Agreement’ (CMA) with Suzuki Motor Gujarat Private Limited

(SMG), a fellow subsidiary of Suzuki Motor Corporation (SMC) on

December 17, 2015 for a period of 15 years which automatically

extends for a further period of 15 years, unless terminated by

mutual agreement. SMG during the term of this agreement, shall

manufacture and supply vehicles on an exclusive basis to MSIL

in accordance with the terms of the CMA. Accordingly, expenses

recorded during the year includes ` 2,921 million (previous year

` 396 million) towards the lease of specific Property, Plant &

Equipment.

256



Financial Statements (Consolidated) | Notes | AOC-1

43. Auditors' Remuneration * #@


Year ended

31.03.2017

Statutory audit 16 19

Taxation matters 8 5

Other audit services / certification 4 3

Reimbursement of expenses 1 1

* excluding GST, Service Tax and Swachh Bharat & Krishi Kalyan Cess.

# includes ` 4.31 million paid to predecessor auditors & ` 0.28 million paid to auditors of merged entities in FY 16-17

@ includes ` 0.65 million (previous year ` 0.79 million) paid to auditors of subsidiary companies.

44. Excise Duty Consequent to introduction of Goods and Services Tax (GST) with effect from 1st July, 2017; Central Excise, Value Added Tax (VAT)

etc. have been subsumed into GST. In accordance with Indian Accounting Standard - 18 on Revenue Recognition and Schedule III

of the Companies Act, 2013, unlike Excise Duties, levies like GST, VAT etc. are not part of Revenue. Accordingly, the figure for the

period ending Mar 18 is not comparable with period ending Mar 17.The following additional information is being provided to facilitate

such understanding:


Year ended

31.03.2017

A. Sale of products 803,488 761,561

B. Excise duty 22,317 92,314

C. Sale of products excluding excise duty (A) - (B) 781,171 669,247

KENICHI AYUKAWA KAZUNARI YAMAGUCHI AJAY SETH SANJEEV GROVERManaging Director & CEO Director Chief Financial Officer Chief General Manager & Company Secretary

DIN : 02262755 DIN : 07961388

ICSI Membership No : F3788

Place: New Delhi


257

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AOC-1


Financial Statements (Consolidated) | AOC-1 | Annexure - A

259

Annexure - A

Report on the performance of subsidiaries, associates and joint venture companies and their contribution to the overall performance of the Company during the period under report

Maruti Suzuki India Limited has 2 subsidiaries, 2 joint ventures

and 13 associates. These 17 companies collectively contribute

1.94% of the total comprehensive income of the Group for the year

ended 31st March 2018 and 1.92% of the total net assets of the

Group as at 31st March 2018.











Subsidiaries

The subsidiaries contribute 0.02% of the total comprehensive

income for the year ended 31st March 2018 and 0.06% of the total

net assets of the Group as at 31st March 2018. Brief overviews of

the Companies are given below:

J. J. Impex (Delhi) Private Limited (Subsidiary):

The Company became a subsidiary of Maruti Suzuki India Limited

from year ended 31st March 2013. The Company is engaged

exclusively in the business of sale of spares and servicing of cars

manufactured by Maruti Suzuki India Limited.


The Company was incorporated on 14th January 2002. The

Company is a 100% subsidiary of Maruti Suzuki India Limited.

The Company was formed to act as advisors and consultants to

provide value added services of all description to owners and

users of motor vehicles. No business activity has been carried out

by the company during the year.

Joint Ventures and Associates

Joint Ventures and associates contribute 1.92% of the total

comprehensive income for the year ended 31st March 2018 and

1.86% of the total net assets of the Group as at 31st March 2018.

Maruti Insurance Broking Private Limited (Associate):

The Company was incorporated in India on 24th November

2010. The Company is engaged in the business of insurance

broking with license from the Insurance Regulatory Development

Authority to carry on General Insurance Direct Broking Business.

During the year ended 31st March 2018, the Company has

contributed 0.94% (previous year 1.02%) of the total comprehensive

income of the Group.

Other Companies

The other joint ventures and associates of the company contribute

0.98% of the total comprehensive income for the year ended 31st

March 2018. They are engaged in the business of manufacturing

automotive components. Below is the list of joint ventures and

associates:

1. Plastic Omnium Auto Inergy Manufacturing India Private Limited

2. Magneti Marelli Powertrain India Private Limited

3. Bellsonica Auto Component India Private Limited

4. Machino Plastics Limited

5. Mark Exhaust Systems Limited

6. Manesar Steel Processing (India) Private Limited

7. Bharat Seats Limited

8. Jay Bharat Maruti Limited

9. FMI Automotive Components Private Limited

10. Hanon Climate Systems India Private Limited

11. Caparo Maruti Limited

12. SKH Metals Limited

13. Krishna Maruti Limited

14. Nippon Thermostat (India) Limited

CIN: L34103DL1981PLC011375

Registered Office

1, Nelson Mandela Road, Vasant Kunj,

New Delhi - 110 070

Ph. No.: +91 11 4678 1000

Fax No.: +91 11 4615 0275

www.marutisuzuki.com

[email protected]

Registrar and Transfer Agent

Karvy Computershare Pvt. Ltd.

Karvy Selenium Tower - B, Plot 31-32

Gachibowli, Financial District

Nanakramguda, Hyderabad - 500 032

Ph. No.: +91 40 6716 2222

Fax No.: +91 40 2300 1153

Tollfree No.: 1800-345-4001

www.karvycomputershare.com

© 2018 Maruti Suzuki India Limited

Investor Relations


www.marutisuzuki.com

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